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Tesla shuts down Dojo supercomputer team, reassigns workers amid strategic AI shift, Bloomberg News reports
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Tesla shuts down Dojo supercomputer team, reassigns workers amid strategic AI shift, Bloomberg News reports
Aug 7, 2025 4:58 PM

Aug 7 (Reuters) - Tesla CEO Elon Musk has

ordered to shut down its Dojo supercomputer team, with team

leader Peter Bannon departing the company, Bloomberg News

reported on Thursday, citing people familiar with the matter.

The Dojo supercomputer was designed to process vast amounts

of data and video from Tesla EVs to train the automaker's

autonomous-driving software.

The team recently lost about 20 workers to newly formed

DensityAI, and the remaining Dojo workers are being reassigned

to other data center and compute projects within Tesla, the

report said.

Reuters could not independently verify the report.

Over the past year, Tesla, amid a company-wide

restructuring, experienced multiple executive departures and

thousands of job cuts. Several key Tesla executives, including

leaders in robotics, battery development, and public policy,

have recently departed.

Tesla has redirected its focus to AI-driven self-driving

technology and robotics, with CEO Elon Musk pursuing an

integration strategy across his business empire. In March, xAI

acquired the social media platform X for $33 billion to bolster

its chatbot training capabilities, while Tesla integrated the

Grok chatbot into its vehicles.

In July, Musk dismissed the possibility of a merger between

Tesla and xAI, but announced plans for a shareholder vote to

consider Tesla's investment in the AI startup.

The automaker also plans to increase its reliance on

external technology partners such as Nvidia ( NVDA ) and

Advanced Micro Devices ( AMD ) for compute, and Samsung

Electronics ( SSNLF ) for chip manufacturing, as per

Bloomberg.

Tesla, Nvidia ( NVDA ), AMD and Samsung did not immediately respond

to Reuters requests for comment.

Last month, Samsung secured a $16.5 billion deal to supply

AI chips to Tesla, expected to power self-driving cars, humanoid

robots and data centers. The deal is unlikely to resolve Tesla's

immediate challenges, such as declining EV sales and efforts to

scale its fledgling robotaxi service.

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