Tesla has officially pulled the plug on Dojo, the custom-built supercomputer project that Elon Musk once called crucial for unlocking full self-driving capabilities. Within a year, the initiative went from being a centerpiece of Tesla’s AI ambitions to being phased out entirely.

Bloomberg first reported that the Dojo team was being disbanded, its lead engineer Peter Bannon was departing, and the company would redirect resources toward its next-generation AI chips, known as AI5 and AI6. Musk confirmed the shift on X, explaining that “all paths converged to AI6,” making Dojo’s continuation an “evolutionary dead end.” He noted that while Dojo 2 will not continue, aspects of its design will carry over into AI6-based systems.

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At its core, Dojo was intended to tackle Tesla’s biggest AI bottleneck: processing vast amounts of real-world driving data, labeling it, and feeding it into neural networks to improve autonomous driving. First teased during Tesla’s Autonomy Day in 2019, the project evolved into a showcase of custom chip trays and ambitious claims that it would eventually surpass Nvidia’s top AI hardware.

By mid-2023, Musk revealed Tesla was spending more than $1 billion on Dojo development, framing it as a competitive advantage requiring not just massive compute power but also proprietary driving data. Analysts like Morgan Stanley’s Adam Jonas saw enormous potential, even suggesting Dojo could become an “AWS-like” business for Tesla, with estimates of adding $500 billion to its market value.

Now, the focus shifts entirely to AI6, a platform Musk believes will deliver greater performance and scalability. While Dojo’s direct path may have ended, its influence appears set to live on in Tesla’s future AI architecture.