Tesla Disbands Dojo Supercomputer Team Amid AI Restructuring

Tesla is reportedly dismantling its Dojo supercomputer team and its leader, Peter Bannon, is leaving the company. Remaining team members will be reassigned. The move is part of a broader AI shakeup at the electric vehicle maker.

In a significant move that reflects a strategic shift in its artificial intelligence (AI) strategy, Tesla Inc. has reportedly disbanded its Dojo supercomputer team and its leader, Peter Bannon, is leaving the company. The decision to dismantle the Dojo team, which was responsible for developing in-house chips for driverless technology, is part of a broader AI shakeup at the electric vehicle (EV) maker.

According to sources familiar with the matter, the team has lost about 20 workers recently to newly formed DensityAI, and the remaining Dojo workers are being reassigned to other data center and compute projects within Tesla [1]. The company is now focusing its AI chip development on a single architecture, namely the AI5 and AI6 processors, which are designed for both inference and training tasks.

Elon Musk, Tesla's CEO, confirmed the decision in a post on X, stating that it doesn't make sense for Tesla to divide its resources and scale two quite different AI chip designs. He emphasized that the AI5, AI6, and subsequent chips will be excellent for inference and at least pretty good for training, with all effort now focused on this line [2].

The Dojo supercomputer was designed to process vast amounts of data and video from Tesla EVs to train the company's autonomous-driving software. Its custom training chips were separate from the AI5 and AI6 inference chips, which run models in cars and robots. The dismantling of the Dojo team marks a significant change in Tesla's approach to AI, as it moves towards greater reliance on external technology partners such as Nvidia, Advanced Micro Devices, and Samsung Electronics for compute and chip manufacturing [1].

The decision to streamline AI chip research comes amidst a broader restructuring at Tesla, which has seen its share price slump due to rising competition and a consumer backlash against Musk's political views. The company has also experienced multiple executive departures and job cuts, with a focus redirected towards AI-driven self-driving technology and robotics [2].

Tesla has entered into a $16.5 billion deal with Samsung to secure AI semiconductors through 2033, with the plan for an upcoming plant in Texas to produce the next-generation AI6 chip. This deal is part of Tesla's strategy to diversify its sourcing beyond leading chipmaker Taiwan Semiconductor Manufacturing Co. [1].

The Dojo system, which was seen as a potential $500 billion value driver by analysts, is now being phased out, with its capabilities being integrated into the AI5 and AI6 chips. Musk has hinted at a convergence of Tesla's in-house technology with that of its partners, suggesting that future iterations of the company's in-house chips could converge with partner technology [1].

References:
[1] https://www.business-standard.com/world-news/tesla-disbands-dojo-supercomputer-team-as-leader-peter-bannon-exits-125080800420_1.html
[2] https://www.reuters.com/business/autos-transportation/tesla-streamline-its-ai-chip-design-work-musk-says-2025-08-07/