Amazon's AI Business Model Pivot
Premium Analysis
Amazon is executing a fundamental business model transformation, shifting AWS from an infrastructure provider to an agentic AI platform company. The March 2025 reorganization that created a standalone agent-focused group under Swami Sivasubramanian signals AWS’s bet that agentic AI represents its next multi-billion-dollar business line.
This isn’t organizational shuffling. It’s a structural pivot from “compute rental” to “digital workforce provisioning,” a shift that could redefine how enterprises consume cloud services entirely.
The Reorganization Architecture
Per The Information’s February 2026 report, AWS CEO Matt Garman created a dedicated agent-focused AI group in March 2025, representing the most significant structural change to AWS’s AI organization since Bedrock launched in 2023.
Before March 2025: Sivasubramanian oversaw Bedrock, SageMaker, and emerging AI products as a unified portfolio. Bedrock infrastructure was integrated with AI applications, and SageMaker operated under a single leadership.
After March 2025: A new agent-focused group was created under Sivasubramanian, containing Kiro, AgentCore, Quick Suite, and Transform. Bedrock infrastructure moved to Dave Brown (Compute/ML). SageMaker was split—ML suite to Brown, data products to Mai-Lan Bukovec.
The reorganization triggered significant leadership turnover. Vasi Philomin (Bedrock AI services lead) departed over the summer of 2025. Baskar Sridharan (SageMaker) left in September after roughly one year. Dilip Kumar (Quick Suite, Just Walk Out) also departed. Kathrin Renz (VP Industries) exited in December 2025.
New blood came in to fill agent-focused roles: David Richardson returned from Stripe to lead AgentCore, while Jigar Thakkar arrived from Microsoft (where he helped build Teams) to run Quick Suite.
