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TEXXR

Chronicles

The story behind the story

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Sources: Tesla is disbanding its Dojo supercomputer team and its leader is leaving, after ~20 team members joined DensityAI, a new data center services startup

Tesla Inc. is disbanding its Dojo team and its leader will leave the company, according to people familiar with the matter …

Bloomberg Edward Ludlow

Context & Ripple Effects

Dojo had already seen leadership turnover: its longtime project lead departed in 2023 and Tesla reassigned leadership, according to earlier reporting on the Dojo leadership change. The reported dissolution now goes beyond a personnel handoff to the team itself.

The reported move matters because it combines the loss of an internal AI-computing unit with an immediate migration of roughly 20 staff to DensityAI, a new data-center-services company.

First-order effects

  • Tesla reportedly loses the Dojo organization and its current leader, ending the team’s existing internal structure.
  • DensityAI gains a concentrated group of former Dojo personnel, while those employees shift from Tesla’s in-house effort to a standalone data-center-services startup.

Second-order effects

  • Tesla must absorb, reassign, or replace the engineering responsibilities previously held by Dojo, while DensityAI starts with a team that has worked together on specialized computing infrastructure.
  • The transfer raises the value of cohesive AI-hardware and data-center talent groups, not just individual hires, for startups and incumbent infrastructure providers.

Third-order effects

  • If similar departures persist, AI infrastructure programs may be differentiated less by proprietary organizational boundaries than by where scarce systems talent can be retained and assembled.
  • This is a data point in a broader split between companies maintaining vertically integrated AI-computing efforts and those relying more on external infrastructure ecosystems; the reporting does not establish Tesla’s eventual technical strategy.

The trend: AI-computing strategy is increasingly shaped by the mobility of specialized hardware and data-center teams, testing the durability of tightly integrated in-house programs.

Discussion

  • @niedermeyer.online E.W. Niedermeyer on bluesky
    rip dojo, we hardly knew you (because you were always fake)  —  www.bloomberg.com/news/article...
  • @elonmusk Elon Musk on x
    @amitisinvesting It doesn't make sense for Tesla to divide its resources and scale two quite different AI chip designs. The Tesla AI5, AI6 and subsequent chips will be excellent for inference and at least pretty good for training. All effort is focused on that.
  • @elonmusk Elon Musk on x
    @amitisinvesting In a supercomputer cluster, it would make sense to put many AI5/AI6 chips on a board, whether for inference or training, simply to reduce network cabling complexity & cost by a few orders of magnitude. One could call that Dojo 3, I suppose.
  • r/teslainvestorsclub r on reddit
    Tesla Disbands Dojo Supercomputer Team in Blow to AI Effort - Bloomberg
  • r/technology r on reddit
    Tesla Disbands Dojo Supercomputer Team in Blow to AI Effort
  • r/intelstock r on reddit
    [Bloomberg] Tesla Disbands Dojo Supercomputer Team in Blow to AI Effort
  • r/RealTesla r on reddit
    Tesla Disbands Dojo Supercomputer Team in Blow to AI Effort
  • r/SelfDrivingCars r on reddit
    Tesla Disbands Dojo Supercomputer Team In Blow to AI Effort
  • r/NVDA_Stock r on reddit
    Jensen was right.  Another custom training chip bites the dust.  Its Nvidia world