During an analyst conference call, Elon Musk, CEO of Tesla, disclosed the company’s ambitious plan to invest more than $1 billion in Project Dojo by the end of 2024. The project revolves around the development of a cutting-edge supercomputer, named Dojo. Dojo will be powered by chips specifically designed by Tesla.
The main objective of Dojo is to process massive amounts of data, including video data collected from Tesla vehicles, to facilitate the advancement of self-driving technology. Tesla also confirmed the commencement of production for the ‘Dojo training computer’ in its recent earnings call, signalling its commitment to pushing the boundaries of technological innovation.
Musk emphasized that Tesla currently possesses an extensive archive of video data, predominantly obtained from customer usage of Tesla’s Autopilot driver assistance software and Full Self Driving Beta feature. This vast trove of information amounts to more than 300 million miles of data, which Tesla aims to leverage in the development of its autonomous driving technology. By analyzing and harnessing this wealth of real-world data, Tesla intends to refine and enhance the capabilities of its self-driving systems, ultimately working towards achieving full autonomy.
The announcement of the substantial investment in Project Dojo had an impact on Tesla’s share price, leading to a 4% postmarket decline, which caused concern among investors. To address any uncertainties, Tesla’s Chief Financial Officer, Zachary Kirkhorn, clarified that the investment will be strategically allocated between research and development and capital expenditures, as part of the company’s previously outlined three-year expense outlook. This clarification aims to provide transparency and reinforce Tesla’s commitment to long-term growth and technological advancement.
It is noteworthy that Tesla currently possesses a powerful Nvidia GPU-based supercomputer, which is widely recognized as one of the most potent in the world. However, the upcoming Dojo supercomputer will be a distinctive addition to Tesla’s technology arsenal, as it will feature chips exclusively designed by the company. This custom-built approach is expected to bolster Tesla’s computing power and further enhance its capabilities in processing and analyzing data.
In other news, Elon Musk hinted that Tesla might continue its strategy of reducing vehicle prices if interest rates continue to rise. This pricing strategy has proven successful in stimulating sales and played a significant role in Tesla’s ability to surpass profit and revenue expectations during the second quarter. The company’s willingness to adapt and explore various pricing models underscores its commitment to making electric vehicles more accessible to a broader range of consumers.