Elon Musk has confirmed Tesla is shutting down its Dojo supercomputer project and may be outsourcing some AI functions to his separate company, xAI, raising questions about Tesla’s AI strategy and independence. This shift, coupled with uncertainty around Tesla’s new Cortex supercomputer and integration of xAI’s AI services, casts doubt on the sustainability of Tesla’s valuation and future in autonomous driving technology.
In this video, Eli the Computer Guy discusses Elon Musk’s recent confirmation that Tesla is shutting down its Dojo supercomputer project, which was initially designed to train AI for Tesla’s full self-driving (FSD) technology. Dojo was first announced around 2019 as a cutting-edge AI training system, but it has now been deemed a dead end. Tesla planned to transition to a new supercomputer called Cortex, but there are questions about whether Cortex is fully operational or even still in development. This shift raises concerns about Tesla’s AI strategy and future capabilities.
Eli highlights a significant contradiction in Musk’s approach: Musk has repeatedly stated that Tesla’s value lies primarily in its AI and autonomous driving technology, not just as a car company. However, Musk has also founded a separate AI company called xAI, valued at around $150 billion, which focuses on artificial intelligence independently of Tesla. This separation is puzzling because Tesla’s AI needs seem to overlap with xAI’s capabilities, leading to questions about why Tesla is not fully integrating its AI efforts within one company.
The video points out that Tesla has already begun integrating xAI’s AI services, such as the Grok AI assistant, into Tesla’s customer service operations. This suggests Tesla is effectively outsourcing some of its AI functions to xAI, Musk’s other company. Eli questions the logic behind this arrangement, wondering why Tesla would invest heavily in its own AI hardware and software if it can simply purchase AI services from xAI. This situation could potentially undermine Tesla’s valuation if its AI assets are increasingly externalized.
Eli also discusses Musk’s explanation that Tesla is moving away from the Dojo chips (D2) to newer AI5 and AI6 chips manufactured by TSMC and Samsung, which are designed for both onboard inference and large-scale AI training. Musk describes this new approach as “Dojo 3,” involving many AI chips on a single board to reduce complexity and cost. While this technical pivot is normal in the tech world, the uncertainty around Cortex’s status and the reliance on xAI’s AI services complicate the picture and raise doubts about Tesla’s AI independence.
Finally, Eli reflects on the broader implications of these developments, including the lack of recent updates on Tesla’s Robo Taxi project and the overall confusion surrounding Musk’s management of Tesla’s AI efforts. He questions the sustainability of Tesla’s trillion-dollar valuation if its core AI technology is being developed outside the company. Eli invites viewers to share their thoughts on this complex situation, emphasizing the unusual nature of Musk’s dual AI ventures and the potential impact on Tesla’s future.