Tesla (TSLA) Stock: Musk Confirms Dojo 3 Supercomputer Revival

TLDR

• Tesla CEO Elon Musk announced the company is reviving its Dojo 3 supercomputer following progress on AI5 chip development.
• The automaker shut down the original Dojo project last year after Musk called the second generation a development “dead end.”
• AI5 chips manufactured by TSMC will enter high-volume production in 2027, replacing the AI4 chips currently in Tesla vehicles.
• A $16.5 billion Samsung partnership will handle production of Tesla’s AI6 chip, which is still in early development phases.
• Musk is actively recruiting engineers for the project, describing it as work on the “highest-volume chips in the world.”

Tesla is reviving its Dojo 3 supercomputer project. Elon Musk confirmed the restart in a Sunday social media post.

Tesla, Inc., TSLA

The decision follows recent advances in Tesla’s AI5 chip development. Musk stated the chip design is nearing completion and “in good shape.”

Tesla discontinued its original Dojo supercomputer just months earlier. The company shut down the project and dissolved the development team.

Musk explained the second-generation system had become an “evolutionary dead end.” All development paths converged on the AI6 chip instead.

The AI5 chip progress changed Tesla’s approach to Dojo 3. The supercomputer will train neural networks using Tesla’s own AI chips.

This strategy gives Tesla more control over AI training operations. It also decreases reliance on external suppliers like NVIDIA for GPU hardware.

Chip Production and Partners

Tesla collaborates with multiple manufacturers for AI chip development. Samsung Electronics produces both AI4 and AI5 microchips for the company.

Taiwan Semiconductor Manufacturing Company manufactures the AI5 chips. Production at scale is expected to begin in 2027.

The new chips will replace AI4 hardware in Tesla’s vehicle lineup. Tesla secured a $16.5 billion deal with Samsung for AI6 chip manufacturing.

Tesla currently operates mixed computing infrastructure. The company uses both proprietary chips and NVIDIA hardware across its systems.

Recruiting for Volume Production

The supercomputer supports Tesla’s broader AI strategy. It will train systems powering autonomous driving technology and humanoid robots.

Investors remain focused on Tesla’s next-generation products. The Cybercab robotaxi and Optimus robot generate continued interest beyond electric vehicles.

Stock gains reflect growing optimism about these long-term initiatives. This helps offset weaker performance in Tesla’s core automotive business.

Wall Street Perspective

Analysts maintain a Hold consensus on Tesla shares. Current ratings include 12 Buy, 11 Hold, and seven Sell recommendations.

The average analyst price target sits at $397.47. This suggests potential downside of 9.15% from present levels.

Dojo 3 advances Tesla’s move toward proprietary AI infrastructure. Custom hardware could deliver better training efficiency and lower operating costs.

The company’s shift toward in-house chips allows greater customization. This flexibility could strengthen Tesla’s competitive position in autonomous technology.

Musk described Dojo 3 as “a large number of AI6 systems-on-a-chip on a single board.” The AI5 chip breakthroughs provided Tesla with a clearer development path forward, enabling the project restart after previous technical obstacles forced the shutdown.

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