[AI 각축전]
Electric vehicles are shrinking – limitations of autonomous driving technology
Announcement of discontinuation of next-generation business ‘Apple Car’
Apple “We will unveil our AI model within the year”… Google and Amazon’s AI war begins in earnest
“Apple Car has been declared dead.” (US economic media Business Insider)
Apple’s declaration of discontinuation of the self-driving electric vehicle ‘Apple Car’ project is a symbolic example that shows which direction the ‘future industrial war’ currently heating up around big tech will take. For Apple, the barriers to developing self-driving electric vehicles were much higher than expected, and it was judged that it would be an irreversible situation if it fell behind in the AI competition triggered by generative artificial intelligence (AI) ‘ChatGPT’.
According to the Wall Street Journal (WSJ) on the 27th (local time), Apple Chief Operating Officer (COO) Jeff Williams and Apple Car Project Manager Kevin Lynch mentioned increased investment in AI as a reason for discontinuing Apple Car at an internal meeting. Bloomberg News reported that “approximately one-third of the executives and employees involved in the project will be reassigned to AI-related departments,” and that “it is inevitable that layoffs will be inevitable for Apple Car-specific personnel, such as car designers.” Some have already been notified of layoffs, Bloomberg reported.
In 2014, three years after the death of Apple founder Steve Jobs in 2011, CEO Tim Cook ambitiously led the development of an electric vehicle called the ‘Titan Project’ as a next-generation business. Cars were evolving into ‘computers on wheels’ combined with AI, and Tesla appeared and shook up the traditional automobile industry. Apple, a leading computer company, believed that even a latecomer had a chance of becoming a game changer with its ‘iPhone on wheels.’ Phil Abrams, a former General Motors executive, told WSJ, “Apple had the aura of being able to create innovative products at the time.”
But cars were not smartphones. The barrier to entry into the automobile market, which involves complex issues such as passenger safety and transportation issues, was higher than expected. Apple’s attempt to establish a production partnership with Kia Motors, like Taiwan’s Foxconn, which manufactures the iPhone, failed. The development of autonomous driving systems also did not make easy progress. The New York Times (NYT) recently reported that “Apple, which was struggling, postponed the expected 2025 release date of the Apple Car to 2028.”
The most decisive moment was the change in the future technology market brought about by the emergence of ChatGPT. Generative AI has opened up a completely new market based on its advantages that can be used in all aspects of daily life, including consumer devices. Local media reported, “Apple tried to catch Tesla, but faced the reality that it was behind Microsoft (MS), which joined hands with Open AI, and eventually decided to abolish it.”
The market appears to be welcoming Apple’s decision. Apple’s stock price closed up 0.8% on the New York stock market on the day news of the Apple Car project’s discontinuation was announced. CEO Cook said in a conference call after the earnings announcement on the 1st, “We will be able to share interesting AI-related announcements by the end of this year,” and “We will unveil a generative AI model within the year,” so the resources put into Apple Car are being used aggressively toward AI. It is expected that it will be invested.
Google and Amazon, other big tech companies that are evaluated as lagging behind Open AI, are also focusing their efforts on the AI war. Even though quarterly performance is exceeding market expectations, they are continuing to make large-scale layoffs and declaring investment in AI.
New York =
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.