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Tesla Shuts Down Dojo Supercomputer Team, Reassigns Workers Amid Strategic AI Shift, Bloomberg News Reports

SANTA CLARA COUNTY, CALIFORNIA, AUG 7 – Tesla ends its in-house AI chip project after losing 20 engineers to a new startup and secures a $16.5 billion chip manufacturing deal with Samsung Electronics through 2033.

  • Tesla CEO Elon Musk ordered the shutdown of the Dojo supercomputer team on a recent Thursday, ending its in-house AI chip development efforts.
  • This decision follows years of project delays, a mass departure of around 20 Dojo workers to the startup DensityAI, and the departure of team leader Peter Bannon in 2023.
  • The Dojo supercomputer, created to handle video data from Tesla electric vehicles for training their self-driving AI, is being shut down, and the remaining team members are being redeployed within Tesla to work on different data center and computing initiatives.
  • Last month, Tesla finalized an agreement valued at $16.5 billion with Samsung to obtain AI chips, while Musk ruled out merging Tesla with his AI startup xAI, which purchased X for $33 billion in March.
  • The shutdown signals a strategic shift with Tesla relying more on external partners like Samsung, Nvidia, and AMD amid ongoing restructuring and challenges scaling its robotaxi service.
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Next Big Future broke the news in United States on Thursday, August 7, 2025.
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