Tesla is reportedly shutting down its Dojo supercomputer project and disbanding the team responsible for it, a significant reversal in its in-house chip development efforts. According to sources familiar with the matter, CEO Elon Musk has ordered the project’s closure, and its leader, Peter Bannon, is leaving the company.
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This move marks a major strategic shift. Dojo was a custom supercomputer designed to train the AI models for Tesla’s Autopilot, Full Self-Driving, and Optimus robot programs. It was once seen as a key competitive advantage, with some analysts even estimating it could add hundreds of billions to the company’s value. The decision comes after the project’s former head, Ganesh Venkataramanan, left to co-found a new AI chip company, DensityAI, and took about 20 Dojo employees with him.
Musk later confirmed the report on X, stating it didn’t make sense to divide resources between two different AI chip designs. This suggests Tesla will increase its reliance on external partners like Nvidia, AMD, and Samsung for computing power and chip manufacturing.
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The news follows a turbulent period for Tesla, which has seen an exodus of key talent and faced challenges from rising competition. The company recently secured a $16.5 billion deal with Samsung for AI semiconductors and has hinted at a strategic pivot, with Musk suggesting that future in-house technology could converge with its partners’ offerings. This decision to prioritize external partnerships appears to be the culmination of that strategy.
