Wednesday, May 22, 2024
HomeTechnology NewsApple abandons electric car project to focus on AI

Apple abandons electric car project to focus on AI

While the company has been working on an electric car for almost ten years now, the famous “Apple Car”, it seems that the project has just been nipped in the bud.

apple car concept
Credits: Lets Go Digital

According to a Bloomberg report, Apple has decided to end its electric car project, long known as Project Titan, and redirect its resources toward generative AI. The tech giant reportedly announced the news internally on Tuesday, and said that many of the 2,000 employees working on the car would move to generative AI projects instead. The report also states thatthere will be layoffs, but the exact number is unclear.

Apple’s electric car project has been the subject of speculation for years, as the company was thought to be working on a futuristic self-driving vehicle that would rival Tesla and other automakers. However, the project experienced numerous problems and delaysand Apple has never officially confirmed its existence or ambitions.

Apple had invested billions of dollars in its electric car

According to previous reports, Apple had already driven more than 72,000 km in 2023 using its autonomous driving technology, and had pushed back the planned launch of the car to 2028, or even after 2030 according to other rumors. However, the project also suffered from high staff turnover, management changes and internal doubts.

Apple notably lost some key executives to other companies, such as the former director of Tesla’s Autopilot software and the former CEO of Canoo, a startup specializing in electric vehicles. Apple had also lowered its ambitions and would have abandoned the idea of ​​a fully autonomous car without a steering wheel, instead focusing on a level 2 autonomous car, the same as current Teslas.

Apple withdraws, electric cars will not be profitable

Apple’s decision to cancel the car project reportedly stems from several factors, including little hope of making huge profits in this area. According to Gurman, even with a price tag of $100,000, executives struggled to keep projected profit margins high enough for company standards.

This obviously reminds us of Tesla, which lost billions of dollars for many years before finally making its first profit. On the brink of collapse, Elon Musk’s company even begged Apple to buy it, without success. A buyout now could be one of Apple’s only chances to revive the project in the future.

Apple now wants to bet everything on AI

Now, according to the report, many employees in charge of the Titan project are now working on the company’s generative AI, which it intends to quickly install in its products. Indeed, Apple CEO Tim Cook also recently announced that Apple will launch generative AI features later this year, which could allow users to create content such as music, images and text using AI. Apple is currently spending millions of dollars per day to train its own AI model, called Ajax, which could power various features and services.

apple iphone 15 pro max reviewapple iphone 15 pro max review

If Apple has given up on its electric car dream, other technology companies are pursuing it. Sony and Honda plan to launch their Afeela electric cars with autonomous features in North America next year, with a global deployment in 2026. Afeela cars are expected to offer stylish design, spacious interior and a range of entertainment and connectivity options.

Apple’s electric car project was one of the most mysterious and anticipated projects in the tech world in recent years, and its cancellation is a blow to its fans and investors. What is certain is that even without having ever marketed any car, Apple has probably greatly advanced the electric marketits competitors having to ensure that they get enough of a head start before entering the market.

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