Apple has decided to terminate its ambitious decade-long effort to build an electric car, redirecting resources and personnel to its artificial intelligence (AI) division. The decision, communicated internally to approximately 2,000 employees involved in the project, was disclosed by Chief Operating Officer Jeff Williams and Kevin Lynch, a key executive overseeing the initiative.

The project, famously known as Project Titan, aimed to develop a fully autonomous electric vehicle with advanced features, marking Apple’s foray into the automotive industry. However, challenges plagued the endeavor from its inception, with changes in leadership and strategy contributing to its turbulent journey.

Despite years of investment and development, Apple faced mounting concerns regarding the profitability of the project and the substantial investment required. As a result, the company’s top executives recently decided to wind down the project, marking a significant departure from their aspirations in the automotive sector.

Many members of the project’s team, known as the Special Products Group (SPG), will now transition to Apple’s AI division under the leadership of John Giannandrea. Their focus will shift towards generative AI projects, aligning with Apple’s broader strategic objectives in artificial intelligence.

While the decision to discontinue the electric car project signals a notable shift in direction for Apple, it underscores the company’s commitment to prioritize investments in areas with greater potential for innovation and growth. The move comes amidst Apple’s recent launch of its Vision Pro mixed-reality headset, signaling a renewed emphasis on expanding its product offerings.

Additionally, reports suggest that Apple had scaled back and delayed its plans for a vehicle earlier, shifting from a fully autonomous model to an electric vehicle with more limited features. Concerns over profitability and the feasibility of the project prompted the company to reassess its strategy, ultimately leading to the decision to terminate the initiative.

As Apple navigates this strategic pivot, it remains dedicated to advancing its technological capabilities, particularly in AI, which continues to be a focal point for the company. Despite the setback in its automotive ambitions, Apple’s ongoing investments in research and development underscore its commitment to innovation and shaping the future of technology.