Apple Reportedly Discontinues Billions of Dollars in Apple Cars and Boosts AI Instead

Apple Reportedly Discontinues Billions of Dollars in Apple Cars and Boosts AI Instead

The Apple Car, long rumored and an unconfirmed subject in countless Apple rumors for a decade, is officially dead, according to a new report

According to a Bloomberg report, Apple executives told the approximately 2,000 employees involved in the development of the Apple Car that the project has been scrapped and that other special projects will take priority The report also quotes a person who claims to have knowledge of the meeting and notes that many of these employees will be transferred to a new artificial intelligence division that will focus on generative AI

According to Bloomberg, in addition to some employees moving to other departments, other employees, including hardware engineers, will be allowed to reapply for positions at Apple It is unclear what will happen to automotive designers and other automotive-focused positions, but Bloomberg's sources say layoffs are expected

For a decade, Apple has reportedly been working to develop an electric car that could compete in the competitive auto market At one point, Apple was reportedly investing heavily in Tesla personnel, a move that angered Tesla CEO Elon Musk and caused him to fight very publicly with Apple over the company's plans

Although Apple executives never confirmed the Apple Car, reports of employees hearing the engine revving and the idea that the Apple Car was the company's most secretive, and arguably most important, multibillion-dollar project were widespread [Over time, however, Apple learned that making cars is not the same as making iPhones Some reports suggested that Apple executives were balking at the project, and some said it would not yield the high profits Apple had hoped for; EVs remain popular, but Tesla and other manufacturers are still trying to reflect sluggish consumer demand, forced to lower their prices

Meanwhile, generative AI is playing a more important role in the broader technology industry, and there is a perception that Apple is falling behind Microsoft, Google, and others who are actively incorporating AI visibly in their products This situation will change this year, as Apple will reportedly adopt AI as a centerpiece of this year's iOS 18 and iPhone 16 releases

All is not lost for Apple when it comes to its automotive efforts The company's CarPlay software has proven to be very popular among automakers And with new improvements being made every year, Apple has established a compliant foothold in the automotive business, even if it does not manufacture its own cars

Bloomberg reports that Apple plans to end its Apple Car program within a few weeks But don't expect Apple CEO Tim Cook to talk about it Apple, notorious for its secrecy, is secretive because it doesn't want to promise what can't or won't happen And that seems to be working very well in the case of Apple Carr

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