Investing.com -- Apple Inc (NASDAQ:AAPL)'s decision to scrap its car project cost billions of dollars, but a potential partnership with Rivian could support Apple's artificial intelligence ambitions as data from modern cars may have big role to play in the AI revolution.
A potential partnership would help Rivian (NASDAQ:RIVN) improve its upcoming R2 and R3 EVs and allow Apple to demonstrate its technology it was developing for Project Titan, its electric vehicle, DigiTimes Asia reported Monday.
"The data collection from the Rivian fleet (especially the high definition optical/vision data) may prove vital in the company’s ability to compete in the next phase of the industry," Morgan Stanley (NYSE:MS) said.
Artificial intelligence is widely believed to be the next phase of growth for Apple, with many eagerly expecting the tech giant's big AI unveil at its developer conference next month.
"We believe Apple is set to unveil its long awaited AI strategy at WWDC," next month that could spark an "AI-driven supercycle starting with a new iPad lineup and then the iPhone 16 this Fall," Wedbush said in a Tuesday note.
With data the most precious commodity in the world of AI, the untapped data generated by modern, connected cars may spur more tech firms to partner with automakers.
"We would not be surprised to see a marked uptick in activity between tech firms and auto companies in the months/ quarters ahead,' Morgan Stanley added.
The vision data that supports autonomous driving are already proving valuable in the field of robotics.
There are "growing signs that the collection of vision data is driving a significant advancement in robotics," Morgan Stanley said.
"Unlike smartphones, a car can ‘host’ a significantly greater number of external facing cameras, higher powered inference computers ... and portable energy that allows cars to offer much richer and expansive data.