Dojo Project Restarted Following AI Chip Advancements
Tesla is restarting its Dojo supercomputer project, with CEO Elon Musk announcing that the company is resuming work now that the AI5 chip design is in a satisfactory state.
Musk shared this update on X, stating:
“Tesla will restart work on Dojo3. If you’re interested in working on what will be the highest volume chips in the world, send a note to AI_Chips@Tesla.com with 3 bullet points on the toughest technical problems you’ve solved.”
This marks the first public commitment from Musk to revive the Dojo project since its abrupt shutdown last year. Dojo was Tesla’s initiative to develop its own supercomputer for training the machine-learning systems that power Autopilot, Full Self-Driving, and the Optimus robot.
AI Chip Development and Production Strategy
Elon Musk recently indicated that the AI5 chip is nearing completion and that the AI6 chip is already in early development. Unlike AI5, the AI6 chip will not be manufactured in-house.
Tesla has partnered with Samsung Electronics for the production of its AI chips. A significant agreement was signed last year, valued at $16.5 billion, to supply AI chips through 2033. This deal represents a substantial opportunity for Samsung’s chip foundry, which specializes in outsourced manufacturing.
A new facility being established in Texas will be responsible for the manufacturing of the AI6 chip. This will provide Tesla with an additional production hub, diversifying its manufacturing base beyond its usual supplier, Taiwan Semiconductor Manufacturing Co.
Potential Convergence of Dojo and AI Chips
During Tesla’s Q2 2025 earnings call, Elon Musk suggested that the company is considering merging the Dojo3 chip with the AI6 design.
“Thinking about Dojo3 and the AI6 inference chip, it seems like intuitively, we want to try to find convergence there, where it’s basically the same chip,” Musk stated during the July 23 call. This approach signifies a departure from Tesla’s prior strategy of prioritizing in-house development for all components.
This shift is also influenced by doubts Musk expressed earlier in 2024 regarding the Dojo project. He had previously stated in January, “We’re pursuing the dual path of Nvidia and Dojo. I would think of Dojo as a long shot. It’s a long shot worth taking because the payoff is potentially very high. But it’s not something that is a high probability. It’s not like a sure thing at all.”
This earlier uncertainty appeared to cast a shadow over the Dojo initiative, but the recent announcement indicates a renewed commitment.
Challenges Faced by the Dojo Project
The original Dojo system utilized a custom D1 chip developed internally by Tesla. This system was designed to ingest camera data from vehicles, process it rapidly, and train the models that power Tesla’s self-driving and robotics systems.
In 2023, Morgan Stanley analysts estimated that Dojo could potentially add $500 billion to Tesla’s market capitalization. However, this projection has not materialized. The project was shelved in 2025 following the departure of several key engineers.
Notable departures included Milan Kovac, head of engineering for Optimus, and David Lau, Tesla’s vice president of software engineering, both of whom left in 2025. Omead Afshar, a close aide to Elon Musk, also exited the company in June of that year.
Concurrently, Tesla was navigating challenges such as declining sales, increasing competition, and political backlash stemming from Elon Musk’s public statements. The company paused the Dojo project amidst these accumulating pressures.
With the AI5 chip now stable, efforts are resuming. Tesla has not yet confirmed whether the D1 chip will be retained or if the project will fully transition to Samsung’s AI6 design, but the strategic roadmap has evidently evolved. The company is actively constructing new production lines in Texas, has secured the agreement with Samsung, and Elon Musk is once again discussing Dojo with a forward-looking perspective.
Elon Musk's Continued Wealth Accumulation
Amidst these developments, Elon Musk continues to amass wealth at an unprecedented rate. Forbes recently confirmed that xAI Holdings, Musk's artificial intelligence company, raised $20 billion at a valuation of $250 billion. This has propelled his net worth to $780 billion, making him the first individual to approach the $800 billion mark.
His 49% stake in xAI alone is now valued at $122 billion. This significant increase is partly attributed to a merger with X, which added $62 billion to his net worth within a ten-month period.