Tesla has shut down its Dojo supercomputer team following a strategic shift in its artificial intelligence priorities, according to a report citing people familiar with the matter. Team leader Peter Bannon has left the company.
The Dojo project was designed to process large volumes of data and video from Tesla’s electric vehicles to train its autonomous driving software. Recently, the team lost about 20 members to a newly formed company called DensityAI, and the remaining staff are now being reassigned to other data centre and compute projects within Tesla.
Over the past year, Tesla has undergone a broad restructuring that included several executive departures and thousands of job cuts. Senior figures in robotics, battery development, and public policy are among those who have recently left.
The company is now shifting its focus towards AI-powered self-driving technology and robotics. CEO Elon Musk is pursuing deeper integration across his various businesses. In March, xAI acquired the social media platform X for 33 billion dollars to strengthen its chatbot training capabilities, while Tesla integrated the Grok chatbot into its vehicles.
In July, Musk ruled out a merger between Tesla and xAI but announced a planned shareholder vote on Tesla’s potential investment in the AI startup.
Tesla is also expected to rely more on external technology partners, including Nvidia and Advanced Micro Devices for computing power, and Samsung Electronics for chip manufacturing.
Last month, Samsung secured a 16.5 billion dollar deal to supply AI chips to Tesla. These chips are expected to support self-driving cars, humanoid robots, and data centres. However, the deal is not expected to immediately address Tesla’s current challenges, which include falling electric vehicle sales and the scaling of its early-stage robotaxi service.
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