Amazon’s biggest AI data center is now operational in Indiana, with half a million AWS Trainium2 chips entirely devoted to powering OpenAI rival Anthropic. Just over a year ago, it was nothing but cornfields.

Amazon.com said on Wednesday it has launched its compute cluster project called Rainier, and added that artificial intelligence firm Anthropic will use more than a million chips of the infrastructure by the end of the year.

Amazon will cut about 14,000 corporate jobs as it restructures around AI, trimming layers and bureaucracy while shifting work toward automation.

The job cuts come as Amazon CEO Andy Jassy has said he envisions the company relying on AI agents to replace human workers.

Amazon's HR chief also explained the 14,000 cuts in part by saying AI is helping companies innovate faster.

Amazon has announced an approximately 14,000 person reduction in its corporate workforce. The news follows an earlier report from Reuters that up to 30,000 people could be let go. However, the exact number of layoffs is unclear, with the 14,000 figure being cushioned by planned hirings.

Amazon's AI systems and advanced technology will create a "safe, more productive" environment for employees as the e-commerce giant plans to avoid hiring 600,000 workers by 2033.

Welcome to Tech In Depth, our daily newsletter about the business of tech from Bloomberg’s journalists around the world. Today, Matt Day sizes up Amazon’s place in the changing cloud computing market.

A major outage last week disrupted Amazon's cloud division for 15 hours, affecting hundreds of companies and raising questions about AWS' resilience.

Amazon’s cloud-computing arm plans to invest an additional $5 billion in South Korea over the next six years to build new artificial-intelligence data centers in the country.