Apple has reportedly stopped working on its electric vehicle project and moved some staff members to its artificial intelligence project. The halt in EV operations comes at a time when the industry is facing a shacky trajectory. The decision also comes at a time when the AI industry is projected to have a strong growth outlook.

Apple to Stop Working on EV Project; Staff to Shift to AI Unit

Reuters on Tuesday reported that Apple has halted work on an electric vehicle, ten years after the iPhone manufacturer began the project.
The company’s artificial intelligence (AI) branch will be receiving several staff members who were working on the electric car project, as first reported by Bloomberg News.

The EV sector has currently faced a downturn with reduced employment and output as a result of the consumer backlash. This situation has been caused by high borrowing rates intended to contain inflation and the decline in demand for electric vehicles, which are often more expensive.

Apple’s decision to withdraw from the EV markets will likely make the tech giant focus on AI products now. The decision comes on the back of tech companies trying to mint heavy revenue out of artificial intelligence services. Previously, Google debuted a revised iteration of its AI-powered Gemini for Workspace. In the same race, Microsoft is also adding significant products to its AI lineup.

Currently, the majority of tech businesses are attempting to profit handsomely from artificial intelligence. Nearly all publicly traded technology companies are involved with AI products in one way or another. Nonetheless, these products continue to generate comparatively little profit and income at this time. Tech companies are making a lot of effort to get on the AI bandwagon to earn good sources of money. At present the market for AI is predicted to develop exponentially.

The present results of Nvidia are a good illustration of how AI revenue is key for many tech giants right now. On $22.1 billion in revenue, Nvidia reported adjusted profits per share (EPS) of $5.16 for the quarter. $20.4 billion in revenue and $4.60 in earnings per share were the projections made by analysts. That’s a big increase above Nvidia’s $0.88 per share of $6.1 billion during the same period previous quarter. The fact that Nvidia generated $27 billion in sales throughout the fiscal year 2022 further underscored the company’s accomplishment.

AI Growth on Track for Gains in the Future

AI is going to be a significant future revenue stream for IT companies. Furthermore, the worldwide artificial intelligence market is expected to increase at a CAGR of 37.3% between 2023 and 2030. Forbes predicts that China will gain the most from AI. By 2030, the nation’s GDP will have increased by 26%, with a 14.5% increase in North America. When combined, these benefits will account for almost 70% of the impact on the world economy, or $10.7 trillion.