Musk ends in-house ‘Dojo’ AI chip programme, shifts focus to external partners

Tesla has reportedly shut down its Dojo supercomputer project following multiple high-profile departures, including that of project head Peter Bannon. CEO Elon Musk ended the AI chip programme, reassigning the remaining staff to other data centre projects.

Dojo aimed to process vehicle data for autonomous driving and reduce Tesla’s reliance on Nvidia and AMD. The project faced delays, with leaders such as Jim Keller, Ganesh Venkataramanan, and Bannon departing before its closure.

About 20 former Dojo employees have joined DensityAI, a stealth startup founded by ex-Tesla staff, which is expected to work on AI chips for robots and data centres. Tesla will now rely more on Nvidia, AMD, and Samsung.

Samsung recently secured a $16.5 billion deal to supply AI chips for Tesla’s self-driving cars, robots, and data centres. Musk said Samsung’s Texas factory will produce Tesla’s AI6 chips, with AI5 chips to be made in 2026.

Musk suggested that combining AI5 and AI6 chips could form a ‘Dojo 3’ system, while Dojo 2 would not launch. The shutdown comes as Tesla restructures, with executive exits, job cuts, and renewed focus on AI integration across Musk’s companies.

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Riverlane deploys Deltaflow 2 QEC in first UK commercial quantum integration

Riverlane has deployed its Deltaflow 2 quantum error correction (QEC) technology in a UK commercial quantum setting for the first time. The system introduces streaming quantum memory, enabling real-time error correction fast enough to preserve data across thousands of operations.

Deltaflow 2 combines a custom QEC chip with FPGA hardware and Riverlane’s software stack, supporting superconducting, spin, trapped-ion, and neutral-atom qubit platforms. It has been integrated with high-performance classical systems and a digital twin for noise simulation and monitoring.

Control hardware from Qblox delivers high-fidelity readout and ultra-low-latency links to enable real-time QEC. The deployment will validate error correction routines and benchmark system performance, forming the basis for future integration with OQC’s superconducting qubits.

The project is part of the UK Government-funded DECIDE programme, which aims to strengthen national capability in quantum error correction. Riverlane and OQC plan to demonstrate live QEC during quantum operations, supporting the creation of logical qubits for scalable systems.

Riverlane is also partnering with Infleqtion, Rigetti Computing, and others through the UK’s National Quantum Computing Centre. The company says growing industry demand reflects QEC’s shift from research to deployment, positioning Deltaflow 2 as a commercially viable, universally compatible tool.

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Colorado’s AI law under review amid budget crisis

Colorado lawmakers face a dual challenge as they return to the State Capitol on 21 August for a special session: closing a $1.2 billion budget shortfall and revisiting a pioneering yet controversial law regulating AI.

Senate Bill 24-205, signed into law in May 2024, aims to reduce bias in AI decision-making affecting areas such as lending, insurance, education, and healthcare. While not due for implementation until February 2026, critics and supporters now expect that deadline to be extended.

Representative Brianna Titone, one of the bill’s sponsors, emphasised the importance of transparency and consumer safeguards, warning of the risks associated with unregulated AI. However, unexpected costs have emerged. State agencies estimate implementation could cost up to $5 million, a far cry from the bill’s original fiscal note.

Governor Polis has called for amendments to prevent excessive financial and administrative burdens on state agencies and businesses. The Judicial Department now expects costs to double from initial projections, requiring supplementary budget requests.

Industry concerns centre on data-sharing requirements and vague regulatory definitions. Critics argue the law could erode competitive advantage and stall innovation in the United States. Developers are urging clarity and more time before compliance is enforced.

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South Korean chipmakers avoid US tariffs through domestic investments

South Korea’s Trade Minister said Samsung and SK Hynix will avoid the 100% US tariffs on semiconductor imports. The exemption follows both companies’ significant investments in US chip manufacturing facilities.

Trump had warned that countries failing to produce semiconductors domestically would incur steep tariffs but offered relief for those building factories in the US.

Samsung operates two chip fabrication plants in Texas, supported by the CHIPS and Science Act. Meanwhile, SK Hynix is building a packaging plant in Indiana with government grants and loans.

Samsung’s partnership with Apple will see chips manufactured at its Texas facility supply the iPhone line, particularly image sensors for next-generation models. Analysts expect this collaboration to boost Samsung’s semiconductor sales.

Apple also announced plans to invest an additional $100 billion in US operations over the next four years, highlighting the growing importance of domestic chip production.

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Game developers fear job loss as Google unveils Genie 3

Google’s new AI model, Genie 3, can generate interactive game worlds from simple text prompts. It creates rich, explorable environments in minutes, which previously took developers weeks to build by hand.

The technology offers eye-catching scenarios like flying over mountains, exploring volcanoes, or swimming through deep oceans. Although the graphics still show AI hallmarks, the functionality is advanced enough to raise concerns across the game industry.

Many fear that Genie 3 could render traditional development tools, such as Unity and Unreal, less essential, especially for prototyping or indie games. With just a few words, AI can now build what teams of artists and designers once did.

Job losses driven by AI are already happening in other sectors. Customer support, design, and language learning platforms have replaced humans with bots. Game developers may be next in line as studios seek to cut costs.

Some players may continue to favour human-made games, but the pressure is growing. Genie 3 shows that AI is no longer just assisting developers; it’s beginning to replace them.

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Taiwan deepens AI and digital ties at APEC summit

Taiwan’s Digital Minister, Huang Yen-nun, discussed deeper cooperation in digital and AI technologies with the United States during the recent APEC conference in Incheon—the talks from 3 August to 6 August marked a new phase in bilateral tech collaboration.

Huang confirmed that the APEC gathering had produced its first joint ministerial statement on digital and AI policy. Ministers pledged to enhance connectivity, prevent digital exclusion, promote trustworthy AI, and accelerate the adoption of responsible technology across the Asia-Pacific region.

Digital goals of Taiwan closely align with the APEC declaration, Huang said, particularly in areas such as online fraud prevention, resilience-building, and expanding the digital economy. He framed the agreement as a strong alignment with national priorities.

Michael Kratsios, director of the White House Office of Science and Technology Policy, was highlighted as a key ally. Huang also held talks with representatives from Japan and Southeast Asia to explore regional cooperation in emerging technologies.

Cybersecurity and semiconductors remain central to Taiwan’s leadership in the technology sector. However, Huang acknowledged that further investment and collaboration with digital trailblazers, such as those in the United States, are needed to maintain the country’s edge in high-value innovation.

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Law curbs AI use in mental health services across US state

A new law in a US state has banned the use of AI for delivering mental health care, drawing a firm line between digital tools and licensed professionals. The legislation limits AI systems to administrative tasks such as note-taking and scheduling, explicitly prohibiting them from offering therapy or clinical advice.

The move comes as concerns grow over the use of AI chatbots in sensitive care roles. Lawmakers in the midwestern state of Illinois approved the measure, citing the need to protect residents from potentially harmful or misleading AI-generated responses.

Fines of up to $10,000 may be imposed on companies or individuals who violate the ban. Officials stressed that AI lacks the empathy, accountability and clinical oversight necessary to ensure safe and ethical mental health treatment.

One infamous case saw an AI-powered chatbot suggest drug use to a fictional recovering addict, a warning signal, experts say, of what can go wrong without strict safeguards. The law is named the Wellness and Oversight for Psychological Resources Act.

Other parts of the United States are considering similar steps. Florida’s governor recently described AI as ‘the biggest issue’ facing modern society and pledged new state-level regulations within months.

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ChatGPT checkout could sideline major platforms

OpenAI is preparing to add a payment system into ChatGPT, allowing users to complete purchases without ever leaving the chatbot. Retail leaders are calling it a turning point in e-commerce, as it may significantly simplify how people shop online.

The company is expected to take a cut of transactions and work with platforms such as Shopify to streamline operations. With over 77 million users, ChatGPT has the reach to become a dominant shopping tool, potentially bypassing platforms like Amazon.

Executives worry visibility could depend on revenue-sharing, forcing brands to pay for prominence in the chatbot. Some fear this pay-to-play model could leave smaller retailers behind and limit consumer choice.

At the same time, personalised AI-driven recommendations may enhance user experiences while raising questions about data use and bias. Entrepreneurs on X are already predicting widespread AI-led shopping within a year.

Retailers are now adjusting strategies to remain visible in this new market. While some early adopters show success using AI to complete purchases, others highlight technical challenges in integration and website compatibility.

Observers say search engines could lose relevance as shoppers turn to AI instead. Regulators remain cautious, particularly in markets like Australia, where many consumers are open to AI-led transactions.

The industry faces a shift where chatbots may evolve into full-scale digital marketplaces. Brands are urged to act quickly, or risk losing out as AI commerce becomes the norm.

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Late-stage GenAI deals triple, Ireland sees growing interest

According to EY Ireland, global investment in generative AI surged to $49.2bn in the first half of 2025, eclipsing the full-year total for 2024. Despite a drop in deals, total value doubled year-on-year, reflecting a pivot towards more mature and revenue-focused ventures.

Average late-stage deal size has more than tripled to $1.55bn, while early and seed-stage activity has stagnated or declined. Landmark rounds from OpenAI, xAI, Anthropic, and Databricks drove much of the volume, alongside a notable $3.3bn agentic AI acquisition by Capgemini.

Ireland remains a strong adopter of AI, with 63% of startups using the technology. Yet funding gaps persist, particularly between €1m and €10m, posing challenges for growth-stage firms despite a strong local talent base.

Sprout Social’s acquisition of Irish analytics firm NewsWhip, though not part of the H1 figures, points to growing international interest in Irish AI capabilities. Meanwhile, US firms still dominate global deal value, capturing 97%, with the Middle East rising fast and Europe trailing at just 2%.

EY forecasts that sector-specific GenAI platforms, especially in cybersecurity and compliance, will become the next magnet for venture capital through late 2025 and beyond.

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AI tools like Grok 4 may make developers obsolete, Musk suggests

Elon Musk has predicted a major shift in software development, claiming that AI is turning coding from a job into a recreational activity. The xAI CEO believes AI has removed much of the ‘drudgery’ from writing software.

Replying to OpenAI President Greg Brockman, Musk compared the future of coding to painting. He suggested that software creation will be more creative and expressive, no longer requiring professional expertise for functional outcomes.

Musk, a co-founder of OpenAI, left the organisation after a public dispute with the current CEO, Sam Altman. He later launched xAI, which now operates the Grok chatbot as a rival to ChatGPT, Gemini and Claude.

Generative AI firms are accelerating efforts in automated coding. OpenAI recently launched Codex to create a cloud-based software engineering agent, while Microsoft released GitHub Spark AI to generate apps from natural language.

xAI’s latest offering, Grok 4, supports over 20 programming languages and integrates with code editors. It enables developers to write, debug, and understand code using commands.

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