Updated Feb 27, 2024 - Technology

Report: Apple cancels electric car to focus on artificial intelligence

The Apple logo on a building.

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Apple has canceled its secretive plan to develop an autonomous electric car, Bloomberg reported on Tuesday, citing anonymous sources with knowledge of the matter.

Why it matters: It's an abrupt, substantial shift for the company, as the multibillion-dollar, decade-long project would have led the company into an entirely new market, and it would have marked a new entrant in the auto space.

  • Many of the engineers developing the car will instead be reassigned to focus on generative AI projects under the company's artificial intelligence division, according to Bloomberg.
  • A source confirmed to Axios' Ina Fried that the team for the car project has been disbanded.

Details: Few details were publicly known about the project, as Apple tends to keep its cards close to the vest.

  • It was clear that the company was interested in the auto industry and specifically developing and testing automated driving systems.
  • However, Apple cut staff to its autonomous car unit in 2019, changed leadership and revamped its strategy several times over the years.

The company declined to comment to Axios.

Go deeper: What we know about the Apple car

Editor's note: This story has been updated with additional details.

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