Apple Pulls the Plug on Self-Driving Car Project, Shits Focus to AI

UNPLUGGEDApple Pulls the Plug on Self-Driving Car Project, Shits Focus to AI

Apple has reportedly scrapped its plans to develop electric vehicles (EV), putting an end to speculation that began a decade ago regarding the tech giant’s venture into the automotive industry.

The company, which never officially confirmed the project, had around two thousand employees dedicated to the initiative. According to Bloomberg News, many of these employees will transition to Apple’s artificial intelligence (AI) division.

“This is a smart and long-awaited decision,” commented Ray Wang, founder and CEO of Silicon Valley consultancy Constellation Research. “The market demand for EVs is not there and AI is where all the action is.”

Initially dubbed the Special Projects Group under CEO Tim Cook’s Project Titan, Apple’s venture into EVs was shrouded in secrecy. Reports suggested the company was working on a fully autonomous vehicle, devoid of traditional features like a steering wheel and pedals. However, despite significant investment in research and development, the team was still years away from producing a viable vehicle.

While Apple pivots away from automotive pursuits, its focus on AI and other ventures remains strong. The recent launch of the Vision Pro virtual reality headset underscores the company’s commitment to innovation beyond its iconic iPhone and computers.

The decision aligns with market trends, as the demand for AI in consumer electronics continues to surge. Research firm Counterpoint projects significant growth in the shipment of generative AI smartphones, with figures expected to exceed 100 million units in 2024 and potentially reaching over 500 million by 2027.

Amidst a challenging landscape for EV manufacturers, with slowing demand and increasing competition, Apple’s strategic shift reflects broader industry dynamics. Major players like Ford and General Motors have adjusted their EV production plans, while electric truck maker Rivian announced layoffs and stagnant production growth. Even Tesla, led by Elon Musk, faces pricing pressure and tempered sales growth projections.

Musk, known for his expressive social media presence, responded to reports of Apple’s project shutdown with a simple yet suggestive emojis depicting a salute and a cigarette on X (formerly known as Twitter).