Musk ends in-house 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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