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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.
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.
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