Tesla Abandons AI Supercomputer Dojo, Boosting Nvidia Stock

Tesla CEO Elon Musk has announced that the company's in-house supercomputer, Dojo, is being sidelined in favor of a new chip design, AI6, which will handle both training workloads and inferencing neural networks across Tesla's infrastructure use cases. This is seen as a major win for Nvidia, as Tesla will likely remain a customer, using outsourced chips to scale its robotaxi and robotics services.

Title: Tesla Shifts Focus to AI6 Chip, Sidelining Project Dojo

Tesla, the leading electric vehicle manufacturer, has announced a significant shift in its autonomous driving and AI chip strategy. In a recent development, Tesla has decided to shelve its Project Dojo initiative, focusing instead on the AI6 chip. This move is seen as a strategic pivot aimed at streamlining the company’s resources and leveraging the capabilities of the AI6 chip for both training and inferencing neural networks across its infrastructure.

Elon Musk, CEO of Tesla, confirmed the decision on his Twitter account, stating that the company will no longer pursue Project Dojo. Instead, Tesla will utilize its existing AI5/AI6 chips for training its Full Self-Driving (FSD) and Autopilot systems. Musk emphasized that integrating multiple AI5/AI6 chips in a supercomputer cluster would significantly reduce network cabling complexity and cost. This strategic shift is expected to enhance the efficiency and scalability of Tesla’s AI operations [1].

The AI6 chip, designed to succeed Project Dojo, is expected to be produced by Samsung’s upcoming Texas fabrication facility. Musk has expressed his enthusiasm for the AI6 chip, stating that it could be seen as a successor to Dojo. Phil Beisel, a tech veteran and former Apple and Rivian alumnus, noted that AI6 is effectively Dojo 3, as the performance of AI5 and AI6 chips is already notable. Musk confirmed Beisel’s observation with a “bullseye” emoji, indicating his confidence in the AI6 chip’s capabilities [1].

This strategic move has significant implications for Nvidia, a major supplier of AI chips to Tesla. By shifting to AI6, Tesla will likely continue to rely on outsourced chips to scale its robotaxi and robotics services. This decision could strengthen Nvidia’s position as a key supplier to Tesla, potentially impacting the company’s stock price and market valuation [1].

The decision to shelve Project Dojo and focus on AI6 is part of a broader trend within the tech industry, where companies are increasingly turning to off-the-shelf AI chips to meet their computational needs. This trend is driven by the complexity and cost of developing and manufacturing custom AI chips. By leveraging existing chip designs, companies can accelerate their development timelines and reduce their capital expenditures [1].

In conclusion, Tesla’s decision to focus on the AI6 chip represents a strategic shift in its AI and autonomous driving efforts. This move is expected to enhance the efficiency and scalability of Tesla’s AI operations while potentially strengthening Nvidia’s position as a key supplier to the company.

References:
[1] https://www.teslarati.com/elon-musk-confirms-tesla-ai6-chip-project-dojo-successor/