Apple has reportedly cancelled its electric car project, ten years after the project was initiated. Several employees who were working on the project will now work on the firm’s artificial intelligence (AI) division.
According to Ben Bajarin, the CEO of consulting firm Creative Strategies, this move will enable Apple to focus on GenAI and compete with other tech giants like Alphabet and Microsoft on AI platform level. Apple has not yet made any big moves in AI, unlike its competitors. The company declined to comment on the news.
The pandemic has disrupted the global automotive industry, and high interest rates to tame inflation have led to a slowdown in demand for usually pricier electric vehicles. As a result, several major automakers have cut jobs and reduced production, with some shifting plans to focus on hybrids instead of fully battery-powered cars.
In 2019, Apple laid off 190 workers from the group after revamping its software approach. The design of the concept car has also changed from a radical, steering-wheel-free autonomous vehicle to a more conventional car with advanced driver-assistance features.