Tesla restarts Dojo3 supercomputer project, pivots to space-based AI compute infrastructure

Reviewed byNidhi Govil

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Tesla is reviving its abandoned Dojo3 AI chip project just five months after shutting it down. CEO Elon Musk says the restarted effort will focus on space-based AI compute rather than training self-driving models. The move comes as Tesla's AI5 chip design reaches completion and the company rebuilds its disbanded hardware team.

Tesla Revives Dojo3 After Abrupt Shutdown

Tesla has restarted work on Dojo3, its third-generation AI chip project, just five months after effectively shutting down the entire initiative

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. CEO Elon Musk announced the revival over the weekend, explaining that the decision stems from progress on the company's AI5 chip design, which he described as being "in good shape"

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. The restarted Dojo AI project marks a dramatic strategic shift for the electric vehicle maker, which had previously disbanded its dedicated hardware team and appeared ready to abandon custom silicon development entirely.

Source: TweakTown

Source: TweakTown

The original Dojo supercomputer project was abruptly terminated last year following the departure of Dojo lead Peter Bannon

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. Around 20 Dojo workers left to join DensityAI, a new AI infrastructure startup founded by former Dojo head Ganesh Venkataramanan and ex-Tesla employees Bill Chang and Ben Floering

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. At the time, Bloomberg reported Tesla planned to increase its reliance on Nvidia and partners like AMD for AI compute and Samsung for chip manufacturing

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Space-Based AI Compute Becomes New Focus

Unlike its predecessors, Dojo3 won't focus on training driverless-vehicle technology on Earth. Instead, Musk says it will be dedicated to space-based AI compute

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. "AI7/Dojo3 will be for space-based AI compute," Musk stated on X, positioning the resurrected project as more of a moonshot

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. This pivot reflects broader industry discussions about moving data centers off-planet, as Earth's power grids face mounting strain from AI infrastructure demands

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Musk and several other AI executives have argued that the future of data centers may lie in orbit, where compute satellites could operate in constant sunlight and harvest solar power 24/7

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. Axios reported that OpenAI CEO Sam Altman also supports the concept of orbital data centers, though Musk has a distinct advantage: he already controls the launch vehicles through SpaceX

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. According to Axios, Musk plans to use SpaceX's upcoming IPO to help finance his vision of using Starship to launch a constellation of compute infrastructure

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In-House AI Chip Program Gains Momentum

Dojo3 will be the first Tesla-built supercomputer to feature purely in-house hardware, with no help from Nvidia

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. Previous iterations like Dojo2 used a mixture of in-house chips and Nvidia AI GPUs

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. Tesla's AI5 chip, manufactured by TSMC, was designed to power the automaker's automated driving features and Optimus humanoid robots

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Source: Interesting Engineering

Source: Interesting Engineering

The AI5 reportedly delivers Hopper-class performance on a single chip and Blackwell-class performance with two chips working together using "much less power"

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. Last summer, Tesla signed a $16.5 billion deal with Samsung to build its AI6 chips, which promise to power Tesla vehicles and enable high-performance AI training in data centers

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. The AI6 chips will be produced in the company's Texas factory

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Source: TechSpot

Source: TechSpot

Tesla Rebuilds Team and Faces Technical Hurdles

To achieve its space-based ambitions, Tesla is now rebuilding the team it dismantled months ago. Musk used his X post to recruit engineers directly, writing: "If you're interested in working on what will be the highest volume chips in the world, send a note to [email protected] with 3 bullet points on the toughest technical problems you've solved"

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The timing coincides with intensifying competition in autonomous driving. At CES 2026, Nvidia unveiled Alpamayo, an open source AI model for autonomous driving that directly challenges Tesla's Full Self-Driving software

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. Musk commented that solving the long tail of rare edge cases in driving is "super hard," adding: "I honestly hope they succeed"

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Significant technical obstacles remain for space-based AI infrastructure. Cooling high-power compute in a vacuum presents a major engineering challenge

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. Latency, repairability, and radiation shielding add further complexity

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. Whether Dojo3 succeeds where its predecessors failed remains uncertain—Dojo 1 struggled to compete with Nvidia despite ambitious goals, while Dojo 2 was cancelled mid-development

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