Recent news indicates that Tesla is disbanding its Dojo supercomputer team, marking a significant setback for the electric vehicle giant in its efforts to develop autonomous driving technology chips independently.
On Thursday, August 7th, Eastern Time, media outlets cited sources familiar with the matter stating that Tesla CEO Elon Musk has ordered the closure of the Dojo project, and team leader Peter Bannon is set to leave the company.
The media reported that Musk's decision will force Tesla to rely more on external technology partners. Tesla plans to strengthen its collaboration with NVIDIA and AMD in computing and engage in deeper cooperation with Samsung Electronics in chip manufacturing.
Analysts previously believed that the Dojo system could become a key competitive advantage for Tesla, with Morgan Stanley estimating in 2023 that the system could add $500 billion in value to Tesla.
The termination of the Dojo project highlights a shift in Tesla's strategic focus in the artificial intelligence race. About 20 members of the Dojo team have recently moved to the newly established DensityAI company, while the remaining employees are being reassigned to other data centers and computing projects within Tesla.
Following the news of the Dojo team's disbandment, Tesla's stock price, which had turned lower in after-hours trading, saw its decline widen, dropping nearly 1% at one point

TSLA

- Tesla is disbanding its Dojo supercomputer team, indicating a significant setback in its efforts to develop autonomous driving technology chips.  
- CEO Elon Musk's decision will increase Tesla's reliance on external technology partners, enhancing collaborations with Nvidia, AMD, and Samsung Electronics.  
- The termination of the Dojo project highlights a strategic shift in Tesla's focus within the AI competition, leading to a drop in Tesla's stock price following the announcement.  

Tesla reportedly disbands the Dojo supercomputer team, facing setbacks in its self-developed AI chip plan