Tesla Shuts Down Dojo Supercomputer Team, Shifts AI Strategy

story

AUG 8

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

story last updated AUG 8

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.

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