Tesla's VP of Hardware Design Engineering, Pete Bannon, Leaves Company Amidst Departure of Top Talent.

Tesla's Vice President of Hardware Design Engineering, Pete Bannon, is leaving the company after leading the development of the Dojo supercomputer and reported directly to CEO Elon Musk. Bannon's departure comes as Tesla focuses on becoming an AI and robotics powerhouse, with Dojo and another computing cluster, Cortex, aimed at improving advanced driver assistance systems and enabling the transformation of Teslas into robotaxis. Tesla recently struck a $16.5 billion deal with Samsung to produce its own A16 chips domestically.

Tesla's Vice President of Hardware Design Engineering, Pete Bannon, is leaving the company after leading the development of the Dojo supercomputer and reporting directly to CEO Elon Musk. Bannon's departure comes as Tesla continues to focus on becoming an AI and robotics powerhouse, with Dojo and another computing cluster, Cortex, aimed at improving advanced driver assistance systems and enabling the transformation of Teslas into robotaxis [1].

Bannon joined Tesla in 2016 from Apple and was instrumental in the development of Dojo, a custom-built supercomputer designed to process and train AI models using the vast amounts of data captured by Tesla vehicles. The supercomputer was a centerpiece of Musk's vision to turn Tesla into an AI and robotics powerhouse, rather than just an electric vehicle company [1].

The recent resignation of Bannon follows a series of high-profile departures from Tesla, including Milan Kovac, David Lau, and Omead Afshar, who held key positions in the company's AI and robotics initiatives. This exodus of talent has raised questions about the stability and direction of Tesla's AI and robotics efforts [1].

Tesla's focus on AI and robotics is further underscored by its recent $16.5 billion deal with Samsung to produce its own A16 chips domestically. This partnership is part of a broader strategy to reduce reliance on international chip production and enhance domestic semiconductor manufacturing capabilities [2]. The deal aligns with recent US government initiatives to bolster domestic semiconductor manufacturing, with the Chips Act allocating $4.75 billion to support Samsung's facilities in Texas [2].

The introduction of the A16 chip agreement signals Tesla's strategic pursuit of multiple chip generations to further its autonomous vehicle technology programs. Samsung's role in manufacturing these chips will be crucial for Tesla's AI and robotics ambitions, particularly as the company aims to deliver on its promise of transforming existing Teslas into robotaxis [2].

Despite the deal with Samsung, Tesla is expected to continue its partnership with Taiwan Semiconductor Manufacturing Company (TSMC) for its AI5 chips. Morgan Stanley believes that the revenue impact of the Samsung deal on TSMC will be minimal, with TSMC likely to continue supplying chips to Tesla and Musk's AI company, xAI [3]. The investment bank estimates that the Samsung deal could add as much as $50 billion to Samsung's market value, based on improved longer-term utilization rates for the Korean firm's Texas plant.

The collaboration between Tesla and Samsung highlights the escalating relevance of specialized AI chips within the automotive industry, crucial for advancements in autonomous vehicles. For Samsung, this partnership validates its strategy to establish a significant manufacturing footprint in the US, ensuring financial viability and leveraging developments amid US-China trade dynamics to localize key technology supply chains [2].

References:
[1] https://www.cnbc.com/2025/08/07/tesla-vp-pete-bannon-developing-chip-tech-dojo-supercomputer-leaving.html
[2] https://aimagazine.com/news/tesla-secures-us-16-5bn-samsung-chip-manufacturing-deal
[3] https://wccftech.com/morgan-stanley-says-teslas-16-5-billion-samsung-chip-deal-will-only-impact-1-of-tsmcs-revenue/