Tesla Shuts Its Chip Unit After Losing 20 Employees to Indian-Origin Ex-Staff’s Startup
In a surprising move, Tesla has decided to shut down its chip design unit, Dojo, after a significant number of employees jumped ship to join a new startup founded by its former Indian-origin head, Ganesh Venkataramanan. The news was announced by Tesla CEO Elon Musk, who cited the reason as the duplication of resources and the need to scale two different AI chip designs.
According to reports, Dojo’s current head, Peter Bannon, will be quitting his position, and other employees will be reassigned to other teams within the company. The decision to shut down Dojo comes after 20 employees, including several key engineers, left the company to join DensityAI, the new startup founded by Ganesh Venkataramanan.
DensityAI is a chip design startup that aims to develop advanced AI chips for various industries, including autonomous vehicles, robotics, and artificial intelligence. The company’s founders, including Ganesh Venkataramanan, have extensive experience in the field of AI chip design, having worked at top companies like Tesla and Google.
The departure of 20 employees, including several key engineers, has reportedly caused significant disruption to Dojo’s operations, leading Tesla to reconsider its strategy. In a statement, Elon Musk said, “It doesn’t make sense for Tesla to divide resources and scale two quite different AI chip designs. We’re going to focus on one approach and do it really well.”
The move is seen as a significant setback for Tesla’s ambitions in the field of AI chip design. The company had previously invested heavily in Dojo, which was established in 2020 with the aim of developing advanced AI chips for its vehicles and other applications. The unit had been working on developing a custom AI chip called the Tesla Full Self-Driving (FSD) chip, which was intended to be used in Tesla’s autonomous vehicles.
However, the departure of key employees and the shutdown of Dojo raises questions about Tesla’s ability to deliver on its ambitions in the field of AI chip design. The company has previously faced challenges in developing its own AI chips, and the loss of key talent and resources may hinder its progress in this area.
The decision to shut down Dojo is also seen as a blow to the company’s plans to develop its own AI-powered autonomous driving technology. Tesla has been investing heavily in autonomous driving technology, and the shutdown of Dojo may impact the company’s ability to deliver on its promises in this area.
In a statement, Tesla said, “We’re streamlining our AI chip design work to focus on one approach and do it really well. We’re grateful for the contributions of our Dojo team and are excited to see what they will accomplish at DensityAI.”
The news has sent shockwaves through the tech industry, with many analysts speculating about the implications of the shutdown for Tesla’s future plans. While the company has not provided further details about its plans for AI chip design, the shutdown of Dojo is seen as a significant setback for its ambitions in this area.
In conclusion, the shutdown of Tesla’s chip design unit, Dojo, is a significant development in the tech industry. The move is seen as a response to the departure of key employees to join a new startup founded by the unit’s former head, Ganesh Venkataramanan. While the company has not provided further details about its plans for AI chip design, the shutdown of Dojo is likely to have significant implications for Tesla’s future plans in this area.
