Tesla Abandons Dojo Supercomputer: Peter Bannon’s New AI Venture

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Tesla has reportedly abandoned its ambitious Dojo supercomputer plans, a project that was central to the company’s autonomous driving initiatives. The team lead, Peter Bannon, is leaving Tesla to start his own AI startup called DensityAI, taking much of the core team with him.

According to a Bloomberg report, Tesla’s Dojo project aimed to develop a powerful in-house supercomputing system for its Full Self-Driving (FSD) and other autonomous features. The company had been working with partners like TSMC but now plans to rely more on external suppliers such as NVIDIA and AMD for its computing needs.

The Dojo team reportedly lost around 20 employees to DensityAI, leading to a significant talent drain. As a result, the remaining employees will focus on data center projects within Tesla. The company intends to increase its reliance on external partners like NVIDIA to ensure it retains sufficient computing power for FSD and other projects without compromising.

Another reason for abandoning Dojo is mounting competition in the AI market and the loss of key talent. Elon Musk has decided to shut down the venture but remains optimistic about xAI, Tesla’s independent AI research lab, which is building massive hyperscalers in the US to support its computing needs.

In a unique start to his ruling against President Donald Trump’s administration on September 30, U.S. District Court Judge William Young included a scanned handwritten note sent to his office. The note read: “Trump has pardons and tanks – what do you have?” At the top of Young’s opinion in AAUP v. Rubio, which ruled that Trump’s effort to deport foreign-born student protesters was unconstitutional.

October 8, 2025

Given that Dojo is no longer a priority, it will be interesting to see what happens with the recent contract signed by Tesla and Samsung for AI6 chips, which are part of Tesla’s pursuit of advanced AI semiconductors.

📚 Reading Comprehension Quiz

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What was one of the reasons Tesla abandoned its Dojo supercomputer project according to the Bloomberg report?

A. Tesla wanted to focus on data center projects within the company. B. The team lead, Peter Bannon, left to start his own AI startup called DensityAI. C. There was a significant talent drain due to key employees leaving for DensityAI. D. Elon Musk decided to shut down all AI projects within Tesla.

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