Tesla scraps Dojo supercomputer, shifts to new AI chips & external partners
Tesla has reportedly ceased development on its ambitious Dojo supercomputer project, reassigning its entire team and signaling a significant strategic pivot in the company’s artificial intelligence endeavors. The decision, which sources indicate came directly from CEO Elon Musk, also saw the departure of Peter Bannon, who had been leading the Dojo initiative. The remaining personnel are being integrated into other data center projects within the company.
Dojo was initially conceived as a foundational component of Tesla’s AI infrastructure, specifically engineered to train the complex neural networks underpinning its autonomous driving features, including Autopilot and Full Self-Driving. Beyond automotive applications, the supercomputer was also intended to support the development of Optimus, Tesla’s humanoid robot. Built around Tesla’s proprietary D1 chip, Dojo was designed to process vast quantities of video data captured by the company’s vehicle fleet, continuously refining and enhancing its AI systems.
Following reports of Dojo’s shutdown, Elon Musk clarified Tesla’s evolving AI strategy on X, stating that the company will now concentrate on its forthcoming AI5 and AI6 chip series. Musk characterized these new chips as “excellent for inference and at least pretty good for training,” suggesting a shift towards more versatile hardware. He further explained that maintaining two distinct chip architectures in parallel—as was the case with Dojo and the new AI line—was inefficient and no longer made strategic sense.
Instead of an internal, dedicated supercomputing effort like Dojo, Tesla is reportedly intensifying its partnerships with external technology providers. The bulk of its future computational power is now expected to be sourced from industry giants Nvidia and AMD. Reinforcing this new direction, Tesla signed a colossal $16.5 billion deal with Samsung in July 2025 for the manufacturing of its AI6 chips, which will be produced at a new facility in Texas. This move away from Dojo, while impactful, does not come as a complete surprise; as early as January 2024, Musk himself had described the project as a “long shot” with an uncertain outcome.
The strategic redirection has, however, led to a noticeable exodus of talent from Tesla. Approximately 20 former Dojo team members have departed, with many finding a new home at DensityAI, a freshly formed startup. According to reports, DensityAI is focusing on developing chips, hardware, and software for AI data centers, with an eye towards applications in robotics, AI agents, and the automotive sector. The startup was co-founded by Ganesh Venkataramanan, who previously spearheaded the Dojo project, alongside former Tesla engineers Bill Chang and Ben Floering. Adding to its leadership, Martin Viecha, Tesla’s former head of investor relations, has also joined DensityAI as an advisor.