Apple’s decision to abandon its electric car project and shift its focus to artificial intelligence (AI) has been met with approval from the markets. After a decade of investment into the technology, the tech giant has decided to allocate more resources to the burgeoning AI sector.
The project, known as Project Titan, was initiated by Apple ten years ago during a time when self-driving vehicles were the talk of Silicon Valley. The company had initially aimed to release a self-driving car by 2024. However, the project faced numerous obstacles and setbacks, including the impact of the COVID-19 pandemic.
Despite reportedly pouring billions into research and development, Apple scaled down its ambitions for a radical, autonomous vehicle without a steering wheel. Instead, the company shifted its focus towards developing a more conventional car with advanced driver-assistance features. In 2019, 190 workers from the project were laid off.
Apple’s decision to abandon its electric car project is not an isolated case. Other leading automakers, including Tesla, have also scaled back their investments in electric vehicles (EVs). Tesla, the market leader in the EV industry, has even projected a decline in sales for this year. This shift in strategy has seen some companies redirect their efforts towards hybrid vehicles rather than fully battery-powered cars.
Elon Musk, the billionaire CEO of Tesla, responded to the news of Project Titan’s demise with a tweet featuring emojis of a salute and a cigarette. This reaction suggests that Musk views Apple’s decision as a validation of his own company’s approach to the electric car market.
The electric vehicle sector as a whole has faced challenges in a sluggish global economy. High interest rates have increased borrowing costs, leading to a decrease in demand for electric vehicles, which tend to be more expensive than traditional cars. Consequently, the industry has been forced to cut jobs and reduce production.
In light of these circumstances, Apple’s shift towards AI appears to be a strategic move. The AI sector has been gaining momentum, and Apple’s decision to reallocate its resources reflects a recognition of the potential growth and profitability in this field.
While the abandonment of the electric car project may be seen as a setback for Apple, the company’s decision to focus on AI has been met with approval from the markets. As the tech giant redirects its efforts towards artificial intelligence, it remains to be seen how this shift will shape the future of Apple and its position in the rapidly evolving tech industry.