After a decade, Apple shifts focus from electric cars to AI advancements

Apple has officially terminated its highly anticipated electric car project, known internally as “Project Titan,” after nearly a decade of development, according to Reuters, citing insider information.

The decision to cancel the project comes amid challenges in perfecting self-driving technology and a strategic redirection towards areas like generative AI within Apple’s agenda.

This move signifies the end of a venture that once held promise as a potential avenue for Apple to expand into a new sector, similar to its success with the iPhone. However, Project Titan’s journey has been marked by uneven progress, culminating in its termination amidst a global slowdown in electric vehicle investments.

The timing of this decision is significant as Apple grapples with a plateau in iPhone sales growth and increasing competition offering comparable features at competitive prices. This sales decline extends beyond iPhones to iPads and Mac computers, reflecting a broader slump in demand for high-end gadgets.

According to Bloomberg News, some employees involved in the project will transition to Apple’s artificial intelligence (AI) endeavors. This shift may indicate a strategic move towards enhancing AI capabilities, potentially boosting investor confidence in Apple’s competitive edge. Apple declined to comment on the matter.

Ben Bajarin, CEO of consulting firm Creative Strategies, remarked to Reuters, “If it is true, Apple will put more focus on GenAI and that should give investors more optimism about the company’s efforts and ability to compete at a platform level on AI.”

While Apple’s AI initiatives have been relatively subdued compared to industry leaders like Alphabet and Microsoft, this shift suggests a potential intensification in their AI integration efforts, addressing concerns about falling behind in this critical technological domain.

Elon Musk, CEO of Tesla, a key player in the electric vehicle market, applauded Apple’s decision on social media, highlighting the evolving landscape of electric vehicle investments amidst growing consumer demand for eco-friendly transportation alternatives.

Apple’s Project Titan, an ambitious venture into autonomous vehicles, commenced a decade ago amidst a wave of enthusiasm in Silicon Valley. In November 2021, Bloomberg reported Apple’s contemplation of launching its electric car by late 2024 or early 2025. However, progress was marred by obstacles predating the COVID-19 pandemic, including layoffs and shifts in the vehicle’s design concepts.

Apple had previously downsized the team, letting go of 190 employees in 2019 following a change in its software strategy. Initially, Project Titan sparked expectations of Apple replicating its iPhone success, with speculations swirling about revolutionary designs reshaping the automotive industry. However, the project gradually shifted towards a more conventional vehicle with advanced driver-assistance features, diverging from its initial radical vision.

The termination of Project Titan highlights the formidable challenges of exploring new frontiers, even for a tech behemoth like Apple, renowned for innovations that have reshaped entire industries.