Apple Inc. has scrapped its plans for developing autonomous electric vehicles and shifted its focus to the artificial intelligence sector. Li Xiang, CEO of Li Auto, stated that Apple's decision to abandon car manufacturing is an absolutely correct strategic choice, believing that artificial intelligence is a must-win battle for Apple. Elon Musk paid tribute to Apple's decision on social media. Li Xiang believes that if Apple succeeds in creating consumer-facing artificial intelligence, it will become a $10 trillion company; if it fails, it will still be a $1 trillion company. Artificial intelligence will become the top entry point for all devices, services, applications, and transactions. The electrification of cars is the first half of the game, while artificial intelligence is the final showdown. Smartphone-extended AI operates in the digital realm (bits), whereas automotive AI operates in the physical world (atoms). AI spans both the digital and physical worlds. The three essential conditions for AI success are talent, data, and computational power.