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    Apple Redirects Car Team to AI Post-EV Market Slowdown

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    After a decade, Apple ended its huge electric vehicle project, Project Titan, to focus on artificial intelligence as the economy negatively affected the EV industry.

    Apple launched Project Titan 10 years ago, when the prospect of self-driving cars was all the rage in Silicon Valley. The company initially said it planned to introduce self-driving cars as early as 2024.

    However, the project was delayed due to several challenges, including the COVID-19 pandemic. The company changed its car design from a fundamentally self-driving car without a steering wheel, a departure from traditional car design, to a more traditional car with advanced driver assistance features. The company laid off 190 group employees in 2019.

    Sales of the iPhone, the company's main source of revenue, have begun to slow as competitors release phones with comparable features and affordable prices.

    Sales of iPads and Mac computers also declined as consumer demand for expensive devices declined overall.

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    change of focus

    according to reportthe approximately 2,000 employees who worked on the project were shocked by the internal revelations.

    The team received news from Chief Operating Officer Jeff Williams and Vice President Kevin Lynch, who will oversee the project, marking a shift in focus from the automotive venture to artificial intelligence.

    The move ended a plan that had given Apple the potential to enter new industries and replicate the success of the iPhone. The project has since made uneven progress, but is now at its end as global automakers cut investment in electric vehicles and demand has fallen significantly.

    Ben Bajarin, CEO of consulting firm Creative Strategies, said if this is true, it will result in Apple focusing more on GenAI, and investors will want to see the company compete at the AI ​​platform level. He said this should give him a more optimistic view of the country's efforts and capabilities.

    But major automakers are cutting back on investments, with some planning to focus on hybrid vehicles instead of fully battery-powered cars. This includes Tesla, which is a leader in the EV market.

    However, Tesla CEO Elon Musk supported Apple's decision by posting a salute emoji and a cigarette on X (formerly Twitter).

    Impact on Apple

    The cancellation of Project Titan not only marks a major shift in Apple's position, but also highlights concerns about the challenges tech companies face in diversifying their product portfolios. As a result, Apple, known for its innovation and market-leading products, could enter a new phase of growth and development by moving away from electric vehicles and focusing on AI.

    This step further highlights how difficult it is to break into an established industry like car manufacturing. Apple's decision to refocus its efforts is expected to be closely monitored by the larger technology community, which could result in new developments in strategic investments and technology development.

    Additionally, the industry and investors will be interested to see how Apple's artificial intelligence efforts play out beyond Project Titan. Apple's foray into artificial intelligence, an area ripe for innovation and growth, is therefore a strategic realignment to current and future market demands. This move is particularly relevant given the focus on AI following the significant advances and potential of generative AI technologies.

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