What is the story about?
What's Happening?
Tesla has decided to shut down its ambitious AI supercomputer project, Dojo, after six years of development. The project was initially aimed at training neural networks for full self-driving technology and autonomous humanoid robots. Despite its potential, Tesla disbanded the Dojo team in August 2025, marking a strategic shift towards partnerships for chip development. This includes a significant $16.5 billion deal with Samsung for AI6 chips. The departure of key personnel, including Dojo's lead Peter Bannon and around 20 team members who founded DensityAI, also contributed to the shutdown. Tesla is now focusing on Cortex, another AI training supercluster at its Austin headquarters, indicating a pivot from high-risk, self-reliant hardware to a more collaborative approach in AI development.
Why It's Important?
The shutdown of the Dojo project represents a significant shift in Tesla's strategy towards AI development. By moving away from self-reliant hardware projects, Tesla is embracing partnerships that could enhance its technological capabilities and reduce risks associated with in-house development. This strategic pivot could influence the broader AI industry, as Tesla's decisions often set trends in technology and automotive sectors. The partnership with Samsung for chip development could lead to advancements in AI technology, potentially benefiting industries reliant on AI-driven solutions. Stakeholders in the AI and automotive sectors may need to reassess their strategies in light of Tesla's new direction.
What's Next?
Tesla's focus on Cortex and its partnership with Samsung suggests a future where collaborative efforts in AI development are prioritized. This could lead to new innovations in AI technology, particularly in the automotive industry. The shift may also prompt other companies to consider similar partnerships to enhance their technological capabilities. As Tesla continues to develop Cortex, stakeholders will be watching for advancements that could impact AI applications in various sectors. The industry may see increased collaboration between tech companies and automotive manufacturers, potentially leading to breakthroughs in AI-driven solutions.
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