As first reported by Bloomberg, Tesla is disbanding the team behind Dojo, its in-house AI-training supercomputer, and reassigning remaining staff to other projects within the company. This marks a shift in the company's compute sourcing strategy for its AI-focused initiatives such as autonomous driving and the Optimus robot.

Weeks after Elon Musk promised investors that Tesla’s Dojo supercomputer would be “spectacular” and operating at scale, Bloomberg says the project is shut down, raising sharp questions about his credibility.

The disbanding of Tesla’s Dojo efforts follows the departure of around 20 workers, who left the automaker to start their own AI company dubbed DensityAI focused on data center services for industries.