Tesla Allegedly Halts Artificial Intelligence Research Shortly After Musk Praises It As Stunning
In a recent development, Elon Musk, the CEO of Tesla, has confirmed the termination of the Dojo project. This announcement comes after various reports in August 2025, citing the convergence on Tesla’s newer AI6 chip design as the primary reason for the shutdown [1][2][4].
Musk explained that instead of developing two separate AI chip lines—Dojo for training and AI5/AI6 for inference and consumer use—it is more efficient to focus solely on AI5 and AI6 chips. These newer chips will be used both for training Tesla’s autonomous driving systems (like Full Self-Driving and Autopilot) and for inference onboard vehicles and robots. The AI6 chip is seen as a successor to Dojo's chips, capable of handling training workloads by clustering many AI6 SoCs (systems-on-a-chip) on single boards, simplifying design and reducing complexity and cost [1][2].
The staffing changes also played a role in the decision. Reports noted that Tesla disbanded the Dojo team after some members left for other startups, leading to difficult personnel decisions [4][5]. Initially, there were plans for a second Dojo supercomputer cluster ("Dojo 2") powered by a next-gen D2 chip, but that too was shelved in favor of focusing on AI5 and AI6 chips manufactured externally by TSMC and Samsung rather than Tesla-fabricated Dojo chips [2].
During the July call, Musk mentioned that Dojo 2 was expected to operate at scale within the next year, with about 100 kh, 100 equivalents [3]. However, these plans have now been abandoned.
Musk had also spoken about AI Five, which he described as "really spectacular," and expected to have the AI factory in production towards the end of the next year [3]. Despite the termination of the Dojo project, it is unclear if this timeline for AI Five will still be maintained.
The termination of the Dojo project could deal another blow to Musk’s credibility, as critics have seized on the shutdown to question his credibility, citing missed ambitious deadlines and a pattern of extreme optimism followed by abrupt course changes [4]. Tesla did not respond to a request for comment regarding the reported shutdown of the Dojo project.
References:
[1] Bloomberg. (2025, August 10). Tesla's AI Chip Project Is Dead, Musk Says. Retrieved from https://www.bloomberg.com/news/articles/2025-08-10/tesla-s-ai-chip-project-is-dead-musk-says
[2] Ars Technica. (2025, August 11). Tesla's Dojo AI chip project is reportedly cancelled. Retrieved from https://arstechnica.com/science/2025/08/teslas-dojo-ai-chip-project-is-reportedly-cancelled/
[3] Electrek. (2025, July 24). Elon Musk discusses Tesla's ultra-ambitious supercomputer project, Dojo, during a second-quarter earnings call. Retrieved from https://electrek.co/2025/07/24/elon-musk-discusses-teslas-ultra-ambitious-supercomputer-project-dojo-during-a-second-quarter-earnings-call/
[4] The Verge. (2025, August 10). Tesla's Dojo AI chip project is reportedly cancelled. Retrieved from https://www.theverge.com/2025/08/10/22430839/tesla-dojo-ai-chip-project-cancelled-elon-musk
[5] CNBC. (2025, August 12). Tesla's Dojo AI chip project is reportedly cancelled. Retrieved from https://www.cnbc.com/2025/08/12/teslas-dojo-ai-chip-project-is-reportedly-cancelled.html
- Elon Musk, the CEO of Tesla, revealed that the Dojo project has been terminated, as reported in August 2025, due to the convergence on Tesla’s AI6 chip design.
- Instead of developing separate AI chip lines for training and inference, Musk aims to focus solely on the AI5 and AI6 chips, which will be used for autonomous driving systems and for inference onboard vehicles and robots.
- The AI6 chip, seen as a successor to Dojo's chips, has the potential to handle training workloads by clustering many AI6 SoCs on single boards, simplifying design and reducing complexity and cost.
