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Tesla Shuts Down Dojo Project


Wed 13 Aug 2025 | 01:18 PM
Elon Musk
Elon Musk
Rana Atef

In an unexpected move, Tesla officially shut down its Dojo project, which is a supercomputer once touted as the key to unlocking unprecedented self-driving capabilities for its cars.

The ambitious project, which cost $500 million, was meant to catapult Tesla to the front of the AI race. 

Elon Musk confirmed the reports that Tesla disbanded the team working on its Dojo AI training supercomputer, just a few weeks after announcing he expected to have Tesla’s second cluster operating “at scale” in 2026.

“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,” Musk posted on X.

After creating its first Dojo and powering it with a mix of Nvidia GPUs and D1 chips, Tesla planned to establish a second Dojo factory that a second-generation D2 chip would have powered.

It appears the D2 chip under development has been delayed along with the broader Dojo project as Tesla shifts its focus to its AI5 and AI6 chips, which TSMC and Samsung, respectively are manufacturing.