Apple has halted its long-standing electric car initiative, known as “Project Titan,” to prioritize generative artificial intelligence (AI) developments. This strategic pivot was disclosed by the Financial Times, marking a significant shift for the tech giant as it moves away from an endeavor that aimed to diversify its product range beyond its core iPhone business.

The project’s discontinuation aligns with broader industry trends, as major electric vehicle (EV) manufacturers like Tesla, Ford, and General Motors have recently signaled a slowdown in the EV market. This environment, characterized by diminishing demand and paused expansion plans, perhaps influenced Apple’s decision to redirect its focus towards the burgeoning field of AI.

Apple’s interest in generative AI suggests a drive to stay competitive against tech counterparts such as Samsung and Google by integrating advanced AI features into its product lineup. Despite the abandonment of the electric car project, Apple has demonstrated a continued commitment to research and development, with investments in this area significantly increasing over the past decade. The company’s stock even saw an uptick following the announcement of this strategic shift.

Sources from within Apple reveal that the decision to terminate the car project—which saw investments worth billions over more than a decade and involved hiring experts from leading auto manufacturers—was communicated during an internal meeting. The move has reportedly led to uncertainty among employees involved in the project, with layoffs expected as Apple refocuses its resources on AI.

Apple’s CEO, Tim Cook, had previously hinted at the company’s interest in entering the automotive industry. Nevertheless, challenges, including layoffs and departures of key executives over the years, plagued the project. With the formal closure of Project Titan, attention now turns to Apple’s future endeavors in AI, as the tech giant looks to bolster its position in the rapidly evolving technology landscape.