Apple Abandons Electric Car Plans, Shifts Focus to Generative AI

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Apple has halted its electric car development project, as reported by Bloomberg's Mark Gurman, based on information from anonymous sources. The decision, internally announced by COO Jeff Williams and project lead Kevin Lynch, will see many team members, particularly from the group known as the Special Projects Group (SPG) which includes nearly 2,000 employees, transition to Apple's artificial intelligence (AI) division.

This move aligns with the company's increasing focus on generative AI, with expectations to introduce new AI features in the upcoming iOS 18. The redirection has come unexpectedly for the team, and while some layoffs are anticipated, the exact number is unclear. Apple's decision marks the end of its ambitious automotive venture, Project Titan, initiated around 2014 with aspirations to enter the automotive market with a fully autonomous electric vehicle. Challenges, particularly in achieving autonomous driving capabilities, have plagued the project. The cessation occurs amidst a broader industry slowdown in electric vehicle sales, prompting reassessment of strategies by major automakers. Despite the project's termination, Apple's stock experienced a slight increase, and Tesla CEO Elon Musk publicly approved the decision. The future roles of the hardware engineers and vehicle designers from the car team within Apple remain uncertain.

Source: Bloomberg 

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