Apple Inc. has made a surprising internal announcement, terminating its decade-long effort to develop an electric car, as disclosed by individuals familiar with the matter. This move marks the end of one of the most ambitious projects in the company's history. The decision was communicated on Tuesday to nearly 2,000 employees involved in the project, according to sources who preferred anonymity because the announcement was not public.
Chief Operating Officer Jeff Williams and Kevin Lynch, a vice president overseeing the endeavor, informed the team that the project would begin winding down. Many employees from the Special Projects Group (SPG), responsible for the car, will transition to the artificial intelligence division led by executive John Giannandrea. Their focus will shift to generative AI projects, aligning with the company's evolving priorities.
While several hundred hardware engineers and car designers comprise the Apple car team, it remains uncertain how they will be reassigned within the company. Layoffs are expected, although specific numbers are yet to be disclosed. Apple, headquartered in Cupertino, California, declined to provide further comment.
The decision to terminate the project is significant, representing the conclusion of a multibillion-dollar effort that aimed to propel Apple into the automotive industry. Initially embarked upon around 2014, the project envisioned a fully autonomous electric vehicle boasting a luxurious interior and advanced navigation features.
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