Daijiworld Media Network- California
California, Aug 8: In a surprising move, Tesla Inc. has shut down its ambitious Dojo supercomputer project, marking a significant strategic pivot for the electric vehicle giant. According to sources familiar with the matter, the decision comes alongside the departure of Dojo’s head, Peter Bannon, and the reassignment of remaining team members to other data center and compute projects within the company.
The Dojo project, once positioned at the heart of Tesla’s AI ambitions, was designed to develop in-house chips and computing systems to power self-driving technology and robotics. The supercomputer was tasked with processing vast amounts of data from Tesla’s vehicles to refine Autopilot, Full Self-Driving features, and the Optimus humanoid robot. Analysts had earlier estimated the program could add as much as $500 billion to Tesla’s valuation.
However, the initiative has faced mounting challenges. Around 20 key team members recently left to join DensityAI — a new AI and chip startup founded by former Tesla executives, including Dojo’s previous head, Ganesh Venkataramanan. Tesla will now increasingly rely on external technology partners such as Nvidia, AMD, and Samsung for its AI computing and chip manufacturing needs.
The move reflects a broader shift in Tesla’s operational strategy. CEO Elon Musk, during the company’s recent earnings call, hinted at convergence between Tesla’s in-house technology and partner-developed systems, suggesting that developing proprietary chips may no longer remain the company’s primary focus.
Tesla has also been dealing with an exodus of senior talent, growing competition in the EV sector, and consumer backlash linked to Musk’s political activity. The company recently inked a $16.5 billion deal with Samsung to secure AI semiconductors through 2033, with production planned at a new Texas facility.
Musk had earlier described Dojo as a “long shot” but one worth attempting for its potential payoff. With the latest development, Tesla’s AI journey will likely lean heavily on collaboration rather than standalone internal projects.