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Economic Times
a day ago
- Automotive
- Economic Times
Tesla abruptly ends Dojo supercomputer as Musk shifts focus to next-gen AI chips - what went wrong with the project?
Tesla's ambitious Dojo supercomputer project is over, which is a big change in the company's AI strategy. Elon Musk has ended Tesla's four-year Dojo supercomputer project, saying it was a "dead end" for the company. Elon Musk confirmed that the resources would now be focused on making next-generation AI chips. Tesla is having more and more trouble with both its AI development and electric vehicle sales, which is why it is making this move. There is a lot of turmoil inside the company, and sales of electric vehicles are slowing Musk stated on X that Tesla would no longer be using the specialized hardware and team that worked on Dojo, as per a report by Observer. ALSO READ: Orca attack mystery: What really happened to marine trainer Jessica Radcliffe Tesla's AI Day in 2021 was the first time Dojo was shown to the public. It was made to handle a lot of driving data for the company's Full Self-Driving (FSD) system. It ran on Tesla's D1 chip, which was made by TSMC. The company promised that it would be more efficient, cost less, and depend less on chipmakers like Nvidia. But Musk said that the project had gotten to a point where its future didn't make sense anymore, as per a report by READ : Apple's iPhone 17 color lineup leaks: Stunning new hues spark frenzy online Musk said, 'Once it became clear that all paths converged to AI6, I had to shut down Dojo and make some tough personnel choices, as Dojo 2 was now an evolutionary dead end." This meant making hard decisions about who to hire and fire, like breaking up the Dojo team of about 20 people. Once it became clear that all paths converged to AI6, I had to shut down Dojo and make some tough personnel choices, as Dojo 2 was now an evolutionary dead end. Dojo 3 arguably lives on in the form of a large number of AI6 SoCs on a single board. — Elon Musk (@elonmusk) August 10, 2025 Now that Dojo is out of the picture, Tesla is focusing its AI efforts on two new chips: the AI5, made by TSMC, and the AI6, made by Samsung. The AI5 chip is made to run self-driving cars and robots. The AI6 chip can handle both deployment and big AI training tasks, as per a report by Musk says that combining chip development will make things easier and save money. He said, "Putting a lot of AI5/AI6 chips on a board in a supercomputer cluster makes sense, whether for inference or training, just to make the network cabling less complicated and cheaper by a few orders of magnitude." ALSO READ: Jackie Bezos, Jeff Bezos' mother, passes away at 78 — what is Lewy Body Dementia, the disease she battled? This change also means that Tesla no longer has to keep two separate lines of AI chips: one for inference (running trained models to make decisions in real time) and one for training (giving AI systems huge datasets to teach them how to find patterns), as per a report by closure comes at a time when Tesla's main business, making electric cars, is having trouble. Tesla's electric vehicle sales fell 16% year over year in the quarter that ended on June 30, and total sales fell 12%. The company's share of the U.S. market has also dropped a lot, from 75% in 2022 to less than 50% now, as per a report by to this financial pressure, Tesla has to focus on projects that will make the most money. Tesla wants to speed up improvements to its FSD system and robotics programs by focusing on AI5 and AI6. They don't want to stretch their resources too decision also comes after months of problems within the Dojo division, including the loss of several important engineers. Why did Tesla close down Dojo?Elon Musk stated that all development paths had converged on the AI6 chip, rendering Dojo redundant. What will replace Dojo? Tesla is now focusing on AI5 and AI6 chips for self-driving, robotics, and AI training.
Time of India
a day ago
- Automotive
- Time of India
Tesla abruptly ends Dojo supercomputer as Musk shifts focus to next-gen AI chips - what went wrong with the project?
Tesla 's ambitious Dojo supercomputer project is over, which is a big change in the company's AI strategy. Elon Musk has ended Tesla's four-year Dojo supercomputer project, saying it was a "dead end" for the company. Why did Elon Musk say that Dojo was an "evolutionary dead end"? Elon Musk confirmed that the resources would now be focused on making next-generation AI chips. Tesla is having more and more trouble with both its AI development and electric vehicle sales, which is why it is making this move. There is a lot of turmoil inside the company, and sales of electric vehicles are slowing down. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like He is our only child, we cannot see him suffer. Help us! Donate For Health Donate Now Undo Elon Musk stated on X that Tesla would no longer be using the specialized hardware and team that worked on Dojo, as per a report by Observer. ALSO READ : Orca attack mystery: What really happened to marine trainer Jessica Radcliffe Live Events Tesla's AI Day in 2021 was the first time Dojo was shown to the public. It was made to handle a lot of driving data for the company's Full Self-Driving (FSD) system. It ran on Tesla's D1 chip, which was made by TSMC. The company promised that it would be more efficient, cost less, and depend less on chipmakers like Nvidia. But Musk said that the project had gotten to a point where its future didn't make sense anymore, as per a report by Observer. ALSO READ : Apple's iPhone 17 color lineup leaks: Stunning new hues spark frenzy online Musk said, 'Once it became clear that all paths converged to AI6, I had to shut down Dojo and make some tough personnel choices, as Dojo 2 was now an evolutionary dead end." This meant making hard decisions about who to hire and fire, like breaking up the Dojo team of about 20 people. Once it became clear that all paths converged to AI6, I had to shut down Dojo and make some tough personnel choices, as Dojo 2 was now an evolutionary dead end. Dojo 3 arguably lives on in the form of a large number of AI6 SoCs on a single board. — Elon Musk (@elonmusk) August 10, 2025 What are the AI5 and AI6 chips from Tesla supposed to do? Now that Dojo is out of the picture, Tesla is focusing its AI efforts on two new chips: the AI5, made by TSMC, and the AI6, made by Samsung. The AI5 chip is made to run self-driving cars and robots. The AI6 chip can handle both deployment and big AI training tasks, as per a report by Observer. Elon Musk says that combining chip development will make things easier and save money. He said, "Putting a lot of AI5/AI6 chips on a board in a supercomputer cluster makes sense, whether for inference or training, just to make the network cabling less complicated and cheaper by a few orders of magnitude." ALSO READ: Jackie Bezos, Jeff Bezos' mother, passes away at 78 — what is Lewy Body Dementia, the disease she battled? This change also means that Tesla no longer has to keep two separate lines of AI chips: one for inference (running trained models to make decisions in real time) and one for training (giving AI systems huge datasets to teach them how to find patterns), as per a report by Observer. How is Tesla's electric vehicle business affecting its AI strategy? Dojo's closure comes at a time when Tesla's main business, making electric cars, is having trouble. Tesla's electric vehicle sales fell 16% year over year in the quarter that ended on June 30, and total sales fell 12%. The company's share of the U.S. market has also dropped a lot, from 75% in 2022 to less than 50% now, as per a report by Observer. Due to this financial pressure, Tesla has to focus on projects that will make the most money. Tesla wants to speed up improvements to its FSD system and robotics programs by focusing on AI5 and AI6. They don't want to stretch their resources too thin. The decision also comes after months of problems within the Dojo division, including the loss of several important engineers. FAQs Why did Tesla close down Dojo? Elon Musk stated that all development paths had converged on the AI6 chip, rendering Dojo redundant. What will replace Dojo? Tesla is now focusing on AI5 and AI6 chips for self-driving, robotics, and AI training.
Time of India
6 days ago
- Automotive
- Time of India
Tesla shuts down its AI training supercomputer Dojo, loses 20 key execs to company founded by Ganesh Venkataramanan
Tesla is reportedly dissolving its Dojo supercomputer team, abandoning its in-house chip development for autonomous driving technology. According to a report by Bloomberg, - Tesla Inc. is disbanding its Dojo team and its leader will leave the company, according to people familiar with the matter, upending the automaker's effort to build an in-house supercomputer for developing driverless-vehicle technology. The Dojo shutdown coincides with Tesla's board offering Elon Musk a $29 billion compensation package to prioritize Tesla's AI goals over his other ventures, including xAI, a pure-play AI company. Meet DensityAI, AI startup founded by former Dojo head Ganesh Venkataramanan The move marks a significant pivot for the automaker, which has increasingly leaned on external partners like Nvidia, AMD, and Samsung for its AI and compute needs. Peter Bannon, the lead of the Dojo project, is leaving Tesla, and the remaining team members will reportedly be reassigned to other data center and compute initiatives within the company, the report said citing anonymous sources. The decision follows the exit of approximately 20 Dojo team members who left to form DensityAI, a new AI startup founded by former Dojo head Ganesh Venkataramanan , alongside ex-Tesla employees Bill Chang and Ben Floering. DensityAI is preparing to exit stealth mode and is focused on developing chips, hardware, and software to power AI-driven data centers for robotics, AI agents, and automotive applications. The startup aims to address high-performance computing needs with an emphasis on scalable, energy-efficient solutions for next-generation AI workloads. As Tesla recalibrates, DensityAI's emergence could reshape the AI hardware landscape, leveraging the expertise of former Dojo engineers to challenge established players in the AI data center space. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 75% off installation and replacement for LeafFilter LeafFilter Gutter Protection Get Rates Undo What makes shutting down of Dojo important The disbanding of Dojo comes at a pivotal moment for Tesla. CEO Elon Musk has been repositioning Tesla as an AI and robotics company, despite challenges with its limited robotaxi launch in Austin in June 2025. The launch, which involved Model Y vehicles with a human co-pilot, faced criticism after reports of erratic driving behavior. Dojo, first announced in 2019, was pitched as the backbone of Tesla's AI ambitions, particularly for achieving full self-driving (FSD) by processing vast amounts of video data. Musk highlighted Dojo as recently as Tesla's Q2 2025 earnings call, though his focus shifted to Cortex, a new AI training supercluster at Tesla's Austin headquarters. Dojo combined a supercomputer with Tesla's in-house D1 chip, unveiled at AI Day 2021. Presented by Venkataramanan, the D1 was designed to work alongside Nvidia GPUs to power Dojo, with a next-gen D2 chip planned to address data flow bottlenecks. In 2023, Morgan Stanley estimated Dojo could add $500 billion to Tesla's market value by enabling robotaxi services and software revenue. However, by August 2024, Musk's rhetoric pivoted to Cortex, signaling a strategic shift. Tesla is looking externally Tesla's reliance on external partners is growing. A $16.5 billion deal with Samsung, signed last month, will produce Tesla's AI6 inference chips, designed to scale from FSD and Optimus humanoid robots to high-performance AI training. Tesla is also deepening ties with Nvidia for compute power and AMD for additional chip solutions. During the Q2 earnings call, Musk hinted at streamlining efforts, suggesting convergence between Dojo 3 and the AI6 chip to avoid redundancies. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
14-07-2025
- Automotive
- Yahoo
This Longtime Tesla Bull Just Issued a New Warning for TSLA Stock Holders
Morgan Stanley's Adam Jonas, a prominent Tesla (TSLA) bull, issued a stark warning to shareholders following CEO Elon Musk's announcement that he was launching the 'America Party,' a new political venture targeting strategic congressional seats. Jonas cautioned investors to brace for continued political distractions, writing that they 'should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk's political priorities which may add further near-term pressure to TSLA shares.' Palantir Just Launched Warp Speed for Warships. Does That Make PLTR Stock a Buy? This Analyst Just Doubled His Price Target on AMD Stock How High Can Nvidia Stock Go as Jensen Huang Heads to China? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The warning comes as Tesla stock plummeted nearly 7% on Monday, July 7, erasing over $68 billion in market capitalization. Jonas believes Musk's political activism represents 'part of a planned strategy to achieve a specific goal' rather than random involvement, suggesting these distractions aren't temporary. Tesla's fundamentals remain challenged, with Q2 deliveries declining 14% year-over-year to 384,000 vehicles. Morgan Stanley projects another 13% volume decline in the second half of 2025. However, Jonas maintains optimism around Tesla's pivot to robotics and AI. He calculates that replacing just 10% of Tesla's 125,665 employees with humanoid robots could generate $2.5 billion in value, at an approximate net present value of $200,000 per unit. With earnings approaching on July 23, Jonas expects Tesla to emphasize its robotaxi roadmap and potentially announce an AI Day to recruit talent, positioning Tesla's future beyond traditional automotive manufacturing. Analysts tracking Tesla stock expect Q2 revenue to fall by 11% year over year to $22.4 billion while adjusted earnings are forecast to narrow by 20% to $0.41 per share. Tesla has failed to beat revenue and earnings estimates in four of the last five quarters. The EV maker missed revenue estimates by 9.3% and earnings estimates by 37% in Q1, but TSLA stock still gained 5.4% following the release of its results. Tesla's earnings underperformance is forecast to continue for the rest of 2025. According to consensus estimates, Tesla is expected to report an earnings decline of 25% compared to the 7.4% earnings growth for the S&P 500 index this year. Tesla shares have declined 22% year-to-date as the company faces weakening EV demand, political uncertainty, and CEO Elon Musk's controversial leadership style. Despite trading at a premium adjusted forward earnings ratio of 170x, Tesla's fundamentals are deteriorating. The 'Musk premium' that historically supported Tesla's valuation is eroding. Recent legislation eliminating the $7,500 EV tax credit, ending residential solar support, and rolling back emissions regulations poses significant challenges for Tesla's core business. Moreover, Tesla faces intensifying competition, from legacy automakers, other EV startups, and Chinese rivals that have government support in the Chinese market. Elsewhere, Musk's political antics risk alienating consumers and inviting regulatory retaliation. Tesla's next three years will be make or break as it attempts to deploy robotaxis nationwide while navigating these substantial headwinds. Investors may want to avoid the stock until greater clarity emerges on these multiple challenges. Out of the 40 analysts covering Tesla stock, 12 recommend 'Strong Buy,' two recommend 'Moderate Buy,' 16 recommend 'Hold,' and 10 recommend 'Strong Sell.' The average target price for TSLA stock is $297, 6% below the current trading price. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
India Today
21-06-2025
- Automotive
- India Today
Your next roommate might be a robot: How embodied AI is reimagining home life
From voice-enabled devices on wheels to emotionally intelligent companions, embodied AI is quietly moving in and changing the way we waking up to a robot gently nudging you awake, offering coffee, and prepping your to-do list. This isn't science fiction anymore. Welcome to the age of embodied AI robots designed to live with us, serve us, and even connect with us robotics are no longer gimmicks. Companies are developing mobile assistants that vacuum, fetch groceries, monitor pets, and offer companionship. With AI embedded in physical bodies, the domestic landscape is changing. WHAT TECH TITANS ARE BETTING ONElon Musk predicts 'tens of billions' of personal robots in the future, claiming his company's humanoid bot might one day out value the car business. The robot aims to handle mundane tasks like carrying bags or cleaning up a literal helping hand. He made this statement during Tesla's AI Day in Son, founder of a leading Japanese tech conglomerate, envisions robots that make people smile. His humanoid creation can chat, dance, and recognise emotions. It's not just a device it's a personality. 'We want robots to be affectionate,' Son said at a 2015 SoftBank Robotics event, framing robotics as emotional, not just CARE, AND COMPANIONSHIPThe first generation of home robots focuses on simplifying life. Robot vacuums are now common. Some bots mow lawns or deliver medicine. Others, like kitchen assistants, stir soups or cook simple meals. In hospitals, robotic aides have helped doctors connect with isolated patients during the Musk argues that such technologies free people from menial tasks. 'Physical work will be a choice,' he said during Tesla's 2021 AI Day entrepreneur Jack Ma added a similar vision at the 2019 World Artificial Intelligence Conference, suggesting that AI may eventually reduce the human work week to just 12 hours, freeing people for hobbies, rest, or Japan, AI pets resembling dogs are popular among the elderly. These robotic pets bark, wag their tails, and respond to touch without ever needing a walk. Similarly, humanoid assistants have been used in elderly homes to entertain and talk to TOUCH, ROBOTIC HEARTOne reason these robots are gaining traction is their 'personality.' Designers give them faces, eyes, and voices to feel relatable. Some blink, beep, and react like friendly cartoon characters. Others bow and use gestures. These aren't just aesthetics they're psychological matters too. Unlike static voice assistants, embodied AIs use movement and expression to communicate. Some robots nod, apologise, or mirror human emotion. This makes them feel more like a helper than a Pichai, CEO of Alphabet Inc., highlighted the importance of emotional sensitivity in AI during the 2021 Google I/O conference. He said AI must be inclusive and respectful, and that home robots should understand different accents, emotions, and family dynamics. It's not just about functionality it's about fitting into the human INTELLIGENCE BY DESIGNSome AI companions are now trained to detect feelings. A child-focused robot, for example, senses if a child is upset and adjusts its tone. Other robots can identify a frown and respond with a cheerful interactions aren't random. They're engineered to build trust and emotional rapport. Developers from Aldebaran Robotics, the original creators of one popular humanoid robot, have described their creations as 'kind and emotional companions,' a vision that underpins much of their product LEADS, THE WEST FOLLOWSJapan and South Korea are front-runners in adopting domestic robots. Their culture is more open to robotic companionship, and governments have supported initiatives like robot caregivers for contrast, Western consumers are cautiously optimistic. While smart speakers and appliances are widespread, humanoid robots are still niche. Yet the potential is huge. Smart home ecosystems could naturally evolve into mobile assistants that interact in deeper, more physical Meta CEO Mark Zuckerberg explored a similar idea when he built his own AI home assistant, 'Jarvis,' which controlled lights, music, and doors in his house. He documented this project in a 2016 Facebook post, showcasing the future of personal AI INVISIBLE HELPERThe ultimate vision is a seamless integration of AI into our homes. A fridge that talks to your robot about low groceries. A bot that syncs with your fitness tracker to plan meals. A holographic video call projected by your is the AI ecosystem companies are racing toward. Not flashy tech, but invisible convenience. Like electricity, it just works in the background, improving life without drawing course, challenges remain. Privacy is a major concern robots with cameras and mics in our homes raise alarms. Then there's reliability. A buggy bot could be more frustrating than are investing in stronger safeguards and user-friendly settings. Feedback from early adopters is helping shape more intuitive, secure REVOLUTION IN MOTIONEmbodied AI is not just a trend it's a shift in how we live. From cleaning floors to comforting the elderly, robots are entering our personal spaces with purpose. Visionaries like Musk, Bezos, and Son aren't dreaming they're future home will likely include at least one robot, moving silently through your routine, helping, adapting, and even amusing. And one day, much like smartphones, you may wonder how you ever lived without by Kashmik Singh Chouhan
