Elon Musk Invests in Supercomputers to Drive Tesla AI and xAI Growth

Elon Musk is investing $500 million into Tesla’s supercomputers, such as Dojo and Cortex, to help AI-driven autonomy get better. At the same time, his xAI company wants to use new supercomputing power to compete with big AI companies.

Elon Musk, CEO of Tesla and AI startup xAI, is working harder to build advanced supercomputers that will help all of his companies use AI more effectively. Dojo, Tesla’s supercomputer, is what this project is all about.

Tesla designed Dojo to manage vast volumes of video and data from their vehicles. We need to improve Tesla’s Autopilot and Full Self-Driving (FSD) systems. This is a critical step towards full autonomy and, eventually, a Tesla robotaxis fleet.

Tesla is going to spend $500 million to build Dojo at a facility in Buffalo, New York. The company is also building a second group of supercomputers in Austin, Texas.

It is called Cortex. These supercomputers will help Tesla meet its growing AI needs. For instance, Tesla plans to train Optimus, its humanoid robot, for use in factories next year.

Even though Tesla has made a lot of progress, its vision of fully autonomous vehicles still has problems. Autopilot and FSD features, which need active driver supervision right now, have been scrutinized by regulators who are worried that they overstate what they can do.

Still, the company’s value depends on how well it does at reaching full autonomy, with robotaxis being a key future market. People will closely monitor Tesla’s upcoming robotaxi event, scheduled for early October.

Musk Expands AI Ambitions with xAI

Musk wants to use AI in more ways than just Tesla. In 2023, he started xAI, a company that will make large language models and AI tools, such as Grok, which is an alternative to OpenAI, Microsoft, and Google products.

Musk is building a supercomputer called Colossus in Memphis, Tennessee, to help with xAI. Musk has made significant progress towards his AI goals with the launch of a portion of Colossus. Musk is investing in AI as part of a larger plan to position Tesla and xAI at the forefront of AI and self-driving technology.

The power of these supercomputers should lead to new ideas in both the auto and AI industries. This is because Tesla wants to catch up to companies like Waymo, Cruise, and Zoox in the race to fully autonomous vehicles.