Artificial Intelligence

Tesla Shuts Down Dojo Supercomputer Team, Shifts AI Strategy

AUG 8 2025·Updated OCT 1 2025

Story

Above: The Tesla logo is displayed on a mobile phone in Brussels, Belgium, on Aug. 5, 2025. Image credit: Jonathan Raa/NurPhoto/Getty Images

The Facts

Tesla's vice president of hardware design engineering, Pete Bannon, has reportedly departed the company after joining from Apple in 2016, with CEO Elon Musk ordering the shutdown of the Dojo supercomputer team that Bannon led.
The Economic Times
CNBC
The Dojo team reportedly lost approximately 20 workers to newly formed startup DensityAI, founded by former Tesla employees, including ex-Dojo head Ganesh Venkataramanan, with the remaining team members being reassigned to other data center projects.
Electrek
The Economic Times
Tesla's Dojo supercomputer was designed as a custom-built system to process video data from Tesla vehicles and train AI models for the company's advanced driver assistance systems and robotaxi ambitions.
Data Center Dynamics
CNBC
Musk stated on X that Tesla will focus resources on a single AI chip architecture for its AI5 and AI6 processors rather than dividing efforts between different chip designs.
Investing
Insights by MiTrade
Elon Musk
Tesla signed a $16.5 billion deal with Samsung Electronics to produce AI6 chips through 2033, with plans for manufacturing at Samsung's Texas facility, while increasing reliance on external partners like Nvidia and AMD.
Investing
Seeking Alpha
The company has experienced multiple executive departures this year, including Milan Kovac from Optimus robotics engineering, David Lau from software engineering, and Omead Afshar, Musk's former chief of staff.
TechCrunch
Investing

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Tesla's decision to shut down Dojo makes perfect business sense. The company was burning resources on two separate chip architectures when it could focus on one superior design. External partnerships with proven leaders like Nvidia, AMD, and Samsung offer faster, more cost-effective solutions than reinventing the wheel.

Investing

Narrative B

Shutting down Dojo represents a major strategic retreat from Tesla's AI ambitions. The project was supposed to be Tesla's competitive edge in autonomous driving, with Morgan Stanley valuing it at $500 billion in potential market value. This abandonment signals Tesla's inability to execute on its most critical technology initiatives.

TechCrunch