Tesla Shuts Down Dojo Supercomputer Program: A Win for NVIDIA and AMD
Tesla’s recent decision to shut down its internal Dojo supercomputer program is expected to benefit chipmakers NVIDIA (NASDAQ:NVDA) and AMD (NASDAQ:AMD), according to Wells Fargo analysts. Reports from August 7 reveal that Tesla is disbanding its Dojo team, which was focused on developing AI-optimized silicon for its self-driving technologies. This move likely signals increased reliance on general-purpose GPUs from NVIDIA and AMD.
Strategic Shift in Tesla’s AI Hardware Approach
The Dojo program, launched in August 2021 and deployed initially in July 2023, was aimed at accelerating Tesla’s Autopilot and Full Self-Driving development with custom AI chips. However, Elon Musk has now ordered the shutdown of the project, with Peter Bannon, the Dojo team lead, reportedly departing.
Wells Fargo describes this as a “significant shift” from Musk’s previous commitment to internal AI hardware development, driven by continuous performance improvements in NVIDIA’s GPUs.
Tesla’s Growing Dependence on NVIDIA Hardware
Tesla is increasingly integrating NVIDIA hardware into its AI infrastructure. In Q2 2025, Tesla disclosed a 50,000-unit NVIDIA H100 GPU training cluster. Additionally, Musk announced plans to deploy 16,000 more NVIDIA H200 GPUs at Tesla’s Texas Gigafactory, underscoring the shift away from custom silicon toward NVIDIA’s general-purpose GPUs.
Read More: Quick Guide for Buy Apple, Amazon, and Tesla stocks!
✅Key Takeaways
- Tesla disbands Dojo team, ending in-house AI chip development.
- NVIDIA and AMD likely to see increased demand for AI GPUs from Tesla.
- Shift marks change from Elon Musk’s earlier AI hardware strategy.
- Tesla already using large NVIDIA H100 clusters; expanding with H200 GPUs.
- Investors view the move as positive for NVIDIA and AMD stock potential.
Relevant Data Table: Tesla AI Hardware Deployment
| Hardware Type | Quantity Deployed | Deployment Date |
|---|---|---|
| NVIDIA H100 GPUs | 50,000 units | Q2 2025 |
| Planned NVIDIA H200 GPUs | 16,000 units | Upcoming (Texas Gigafactory) |
Tesla’s pivot away from Dojo reflects a pragmatic approach to leverage proven GPU technology rather than continue investing in costly, custom AI silicon. This strategic change is expected to benefit NVIDIA and AMD as Tesla accelerates AI development with their hardware.
What do you think about Tesla’s shift? Drop your thoughts below and share this article with others interested in AI hardware trends!
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