Apple Inc. has reportedly canceled Project Titan, a long-running internal initiative through which it hoped to develop an electric car.

Bloomberg reported the decision today, citing an internal memo. It’s believed that the Apple business unit responsible for Project Titan had nearly 2,000 employees.

Many of the staffers who worked on the project will reportedly be reassigned to teams building generative artificial intelligence products. Earlier this month, rumors emerged that Apple is developing an AI-powered coding assistant similar to Microsoft Corp.’s GitHub Copilot. The tool is expected to become available in Xcode, a desktop application that developers use to write software for the iPhone maker’s operating systems.

It’s believed that Apple could embed generative AI features in several of its consumer services as well. The company has reportedly considered bringing the technology to the built-in search bar in iOS and MacOS. Keynote, Apple’s alternative to PowerPoint, may receive AI features as well.

In addition to machine learning experts, the business unit responsible for Project Titan is said to employ “hundreds” of hardware engineers and vehicle designers. It’s believed Apple may give those staffers the option to apply to other positions. In conjunction, some of the employees who worked on Project Titan are expected to leave the company.

Today’s report suggests there were several factors behind the decision to scrap the project. The first is that Apple hoped to sell its planned electric car for around $100,000, but was nevertheless concerned the vehicle may not match the profit margins of its existing products. Additionally, the company’s board of directors is said to have expressed concerns about Project Titan’s budget, which amounted to hundreds of millions of dollars per year.

Another considerations that reportedly factored into the initiative’s cancellation is the difficulty of developing autonomous driving software.

When rumors of Project Titan first emerged in 2015, Apple was hoping to build a car with Level 5 autonomy, or the ability to operate independently in all driving conditions. The company later scaled back its ambitions considerably. Shortly before scraping Project Titan, Apple shifted the initiative’s focus from fully autonomous to partly autonomous driving software.

Other market players have also faced setbacks in their development efforts. Last year, General Motors Co.’s Cruise unit lost its license to operate autonomous vehicles in California. GM subsequently suspended production of Origin, a fully autonomous van that doesn’t include a steering wheel or pedals. Apple reportedly explored a similar design for its electric car in the early days of Project Titan.

It’s unclear how many of the project’s core technical objectives were achieved prior to its cancellation. Today’s report detailed that Apple engineers equipped several dozen Lexus vehicles with autonomous driving software. The company is also said to have tested “more secretive components” on a former Chrysler track in Phoenix.

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