Bloomberg News has reported that Apple will be reallocating several employees from its electric car project to the company’s artificial intelligence (AI) division. This shift in focus was first disclosed by Bloomberg and indicates a strategic move within the tech giant’s operations.
Ben Bajarin, chief executive of consulting firm Creative Strategies, commented on this development, stating, “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.”
In contrast to other tech giants such as Alphabet and Microsoft, Apple has thus far refrained from major initiatives in the field of AI, opting for a more reserved approach.
The company declined to provide any official comment on the matter.
The recent surge in interest rates, implemented to curb inflation, has dampened consumer sentiment and resulted in a slowdown in the demand for electric vehicles, typically at higher price points. This has led to various adjustments within the industry, including job cuts and production reductions.
Several prominent automakers, including the electric vehicle market leader Tesla, have recalibrated their investment strategies, with some transitioning their focus to hybrid vehicles instead of fully battery-powered cars.
Initiated a decade ago under the internal codename “Project Titan,” Apple’s foray into the car industry coincided with a wave of enthusiasm for self-driving vehicles across Silicon Valley.
In 2020, Reuters reported that Apple was contemplating the release of a vehicle as early as 2024 or 2025.
In light of recent developments, analysts from Bloomberg Intelligence, Anurag Rana and Andrew Girard, have shared insights on Apple’s strategic pivot towards generative AI. They suggest that this shift reflects a calculated move by Apple, acknowledging the long-term potential for profitability in AI compared to the uncertainties prevalent in the electric vehicle (EV) market.
While Apple has decided to discontinue its electric car project, the company remains steadfast in its commitment to innovation. Over the past five years, Apple has allocated a substantial $113 billion towards research and development efforts. This continued investment underscores Apple’s dedication to exploring new avenues of growth and product development.
In a significant move, the company recently unveiled the Vision Pro headset, marking its entry into a new product category for the first time in nearly a decade. This latest product launch signifies Apple’s ongoing pursuit of cutting-edge technology and diversification beyond its traditional offerings.
Following the announcement, investors reacted favorably, resulting in a 1.2 percent uptick in Apple’s stock, reaching $183.37 by 2:33 pm in New York after Bloomberg released the report.
On the competitive front, Tesla Inc. CEO Elon Musk took to the social media platform X (formerly Twitter), celebrating the news with a saluting emoji and a cigarette.