Tesla has decided to halt the development of its in-house supercomputer project dubbed Dojo, reallocating the team to different data center projects. The focus has shifted to relying on external tech partners like Nvidia, AMD, and Samsung for AI chip manufacturing, while still pursuing in-house chip development. Elon Musk has expressed doubts about the project's probability of success, especially as the company aims for a robotaxi service reliant on computer vision technology. Competition for talent has intensified due to immense AI hype, resulting in significant attrition within Tesla's team, including key executives.
As sales continue to plummet, Tesla is abandoning its in-house supercomputer project, Dojo, as the team is being reassigned to other data center projects.
Musk has refocused efforts on a robotaxi service, moving away from developing AI chips internally due to a lack of high probability success with Dojo.
Tesla is now looking to external technology partners like Nvidia and AMD for AI chip manufacturing, while still pursuing in-house chips.
The AI hype has led to competition poaching talent, contributing to Tesla's struggles with key executive departures and dwindling sales.
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