Tesla Shuts Down Supercomputer Team, Shifts Focus to AI-Driven Technology

Tesla has reportedly shut down its Dojo supercomputer team and reassigned its workers amid a strategic shift towards AI-driven self-driving technology and robotics. The team was responsible for training Tesla's autonomous-driving software, and its leader, Peter Bannon, has departed the company. The move is part of Tesla's restructuring efforts, which have included executive departures and job cuts. The company is now focusing on external technology partners like Nvidia and Samsung for compute and chip manufacturing.

Tesla Inc. has disbanded its Dojo supercomputer team, marking a significant shift in its artificial intelligence (AI) development strategy. The decision, announced by the company's leadership, comes after a series of setbacks and the departure of key personnel to a competing startup, DensityAI [1]. The Dojo project was aimed at developing in-house AI chips for self-driving technology, but its progress has been hindered by delays and a talent exodus.

Peter Bannon, who led the Dojo team, has left Tesla, and the remaining team members are being reassigned to other data center and compute projects within the company [2]. The decision to shut down Dojo follows the departure of around 20 workers to DensityAI, which is reportedly building chips, hardware, and software for AI applications in various sectors [4].

Tesla plans to increase its reliance on external technology partners, including Nvidia Corp. and Advanced Micro Devices Inc. for compute, and Samsung Electronics Co. for chip manufacturing [1]. The company has also secured a deal with Samsung to produce its next-generation AI6 chip at a plant in Texas, diversifying its sourcing beyond leading chipmaker Taiwan Semiconductor Manufacturing Co. [2].

The disbanding of the Dojo team suggests that Tesla is pivoting towards a more collaborative approach with external partners. Elon Musk, Tesla's CEO, hinted at this strategic shift during the company's most recent quarterly earnings call, suggesting that future iterations of Tesla's in-house technology could converge with that of its partners [2].

The decision to shut down Dojo is a notable setback for Tesla's AI efforts, but it also reflects the company's willingness to adapt and innovate in the face of challenges. By focusing on external partnerships, Tesla aims to accelerate its AI infrastructure development and maintain its competitive edge in the automotive and robotics sectors.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-07/tesla-disbands-dojo-supercomputer-team-in-blow-to-ai-effort
[2] https://www.businesstimes.com.sg/companies-markets/transport-logistics/tesla-disbands-dojo-supercomputer-team-blow-ai-effort
[4] https://techcrunch.com/2025/08/07/tesla-shuts-down-dojo-the-ai-training-supercomputer-that-musk-said-would-be-key-to-full-self-driving/