Tesla (TSLA) Stock: Musk Revives Dojo 3 Supercomputer After AI5 Chip Progress

TLDR

• Tesla CEO Elon Musk announced the company is restarting its Dojo 3 supercomputer project after progress on the AI5 chip design.
• Tesla shut down the original Dojo supercomputer last year, with Musk calling the second generation an “evolutionary dead end.”
• The AI5 chip design is nearly complete, with high-volume production expected in 2027 through TSMC manufacturing.
• Tesla signed a $16.5 billion deal with Samsung Electronics to manufacture the next-generation AI6 chip.
• Dojo 3 aims to reduce Tesla’s reliance on external GPU suppliers like NVIDIA while training neural networks for self-driving and humanoid robots.

Tesla is bringing back its Dojo 3 supercomputer project. CEO Elon Musk confirmed the restart on Sunday through a social media post.

Tesla, Inc., TSLA

Tesla had shut down the original Dojo supercomputer just months earlier. Musk disbanded the team and called the second generation an “evolutionary dead end.”

The Dojo 3 project represents Tesla’s effort to build its own AI infrastructure. The supercomputer will train neural networks using Tesla’s proprietary AI5 chips.

This approach gives Tesla more control over its AI development. It also helps the company reduce dependence on external GPU suppliers like NVIDIA.

Tesla currently operates a mix of its own chips and NVIDIA hardware. The company wants to shift toward more in-house solutions.

Manufacturing Partners and Chip Timeline

Tesla works with multiple chip manufacturers for its AI hardware. Samsung Electronics produces Tesla’s AI4 and AI5 microchips.

The AI5 chips are manufactured by Taiwan Semiconductor Manufacturing Company (TSMC). High-volume production is expected to begin in 2027.

These AI5 chips will replace the current AI4 chips used in Tesla vehicles. The company signed a $16.5 billion agreement with Samsung last year for the next-generation AI6 chip.

Musk described the AI6 chip work as still in its early stages. Once all development paths pointed toward AI6, he shut down Dojo 2.

Recruiting for High-Volume Chip Production

Musk is actively recruiting engineers for the Dojo 3 project. He invited job applications for what he called “the highest-volume chips in the world.”

The restart of Dojo 3 ties into Tesla’s broader AI strategy. The company is developing self-driving technology and humanoid robots.

Investors remain focused on Tesla’s future products beyond electric vehicles. The Cybercab robotaxi platform and Optimus humanoid robot generate interest.

Recent stock gains reflect optimism around these long-term projects. This helps offset concerns about weaker performance in Tesla’s core EV business.

Dojo 3 will train Tesla’s autonomous driving and robotics systems. Using in-house AI chips could improve efficiency and cut costs.

The project gives Tesla more flexibility to customize hardware for specific AI workloads. This could strengthen its position in the autonomy space over time.

Analysts have mixed views on Tesla stock. The consensus rating is Hold, with 12 Buy ratings, 11 Hold ratings, and seven Sell ratings.

The average price target sits at $397.47. This suggests a potential 9.15% downside from current levels.

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