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Musk terminates in-house AI chip development at Tesla

Earlier in 2025, around 20 Dojo project workers left Tesla to launch their own startup, DensityAI. By Stewart Burnett

Tesla has disbanded its Dojo AI supercomputer team and Project Head Peter Bannon is leaving the company, marking the end of the automaker's years-long efforts to develop and produce in-house chips for self-driving technology. Chief Executive Elon Musk ordered the programme to be shut down, with the remaining team members being reassigned to other data centre and compute projects within Tesla.

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