Tesla Inc. (NASDAQ: TSLA) has moved to reinvigorate its ambitions in artificial intelligence processing hardware by resuming work on its next-generation Dojo3 supercomputer, according to a recent announcement from CEO Elon Musk. The decision follows marked progress in the development of Tesla’s proprietary AI5 chip, a critical component positioned to underpin the enhanced capabilities of the upgraded Dojo system.
In a public statement made on social media platform X, Musk declared, "Now that the AI5 chip design is in good shape, Tesla will restart work on Dojo3." This reopening signals the company’s intent to advance beyond the limitations faced by its previous Dojo2 iteration, which was eventually classified as an "evolutionary dead end". The older project had led Tesla to temporarily suspend development efforts and restructure the team responsible for further upgrades.
The original Dojo supercomputer, which debuted in 2023, has formed the computational backbone for Tesla’s Full Self-Driving (FSD) software, facilitating intensive machine learning training for automated driving technologies. The progression toward Dojo3 is expected to deliver significant enhancements in processing power and efficiency necessary for scaling Tesla’s AI ambitions.
Central to this renewed endeavor is Tesla’s AI5 chip, an internally designed processor that Musk has highlighted as a major technological advancement compared to existing hardware solutions. The chip is intended to serve as the main computational engine within the Dojo3 framework, reinforcing Tesla’s control over the design and manufacturing of critical AI training infrastructure.
Musk has also disclosed plans for substantial chip production volumes, aiming to create what he describes as "one of the highest volume chips in the world." However, he has cautioned that mass production deployment across Tesla’s vehicle assembly lines is projected to begin around mid-2027. A considerable inventory, reportedly several hundred thousand fully assembled AI5 boards, will be required on the factory lines to meet operational demands.
Highlighting the importance of expertise in this domain, Musk issued an open call to the engineering community: "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 invitation underscores Tesla’s priority to attract top-tier talent to accelerate development.
Currently, Tesla’s AI training clusters leverage a hybrid computing environment, combining Tesla’s proprietary chips with hardware from Nvidia Corp. (NASDAQ: NVDA), a leading player in AI and graphics processing. The introduction of the AI5 chip within the Dojo3 system is anticipated to progressively diminish reliance on external solutions, driving tighter integration within Tesla’s AI infrastructure.
On the financial front, Tesla shares have experienced a decline of approximately 9.49% over the past month, as per Benzinga Pro data, though they maintain a 3.17% gain over the prior year. Stock evaluations reflect robust medium- and long-term momentum and quality metrics, even as short-term performance remains under pressure.
In summary, Tesla’s recommencement of Dojo3 development, anchored by the AI5 chip’s technical progress, represents a pivotal step in scaling the company’s autonomous driving computing capabilities. The simultaneous talent acquisition effort highlights the challenges and ambitions inherent in building advanced, high-volume semiconductor solutions critical to Tesla’s future vehicle technology roadmap.