Tesla has committed $500 million to construct one of its “Dojo” supercomputers at its Buffalo, New York factory, announced Governor Kathy Hochul during a news conference. This decision, according to Hochul’s office, was influenced by New York’s dependable power supply, skilled workforce, and the availability of suitable space for the project.
Dojo, initially unveiled at Tesla’s “AI Day” event in 2021, serves as a supercomputer aimed at propelling the company’s ongoing pursuit of developing a self-driving car. Tesla intends to utilize the supercomputer to analyze extensive video data generated by its electric vehicles to train the AI supporting its most sophisticated driver assistance software, known as Full Self-Driving Beta. Elon Musk previously stated that Tesla anticipates investing “well over $1 billion” in Dojo.
Bringing the Dojo project to Buffalo represents the latest shift in Tesla’s priorities for the location, which has become somewhat problematic for New York state. Initially dubbed “Gigafactory 2,” the factory was acquired by Tesla from SolarCity, a troubled solar panel company, in 2016. By that time, the state had already invested $750 million in the plant. Tesla initially pledged to manufacture Solar Roof tiles there but encountered challenges in scaling production. In 2020, its partner Panasonic withdrew from the plant, prompting Tesla to shift its focus to employing individuals who annotated training data for its less-advanced Autopilot software.
In April of last year, Musk expressed his belief in the potential of the Dojo supercomputer project, characterizing it as a risky venture with the possibility of substantial returns, potentially reaching the multi-hundred-billion-dollar level. During a recent call with analysts, he reaffirmed this perspective, emphasizing the speculative nature of the endeavor.
Musk underscored that while there are no guarantees of success, the program carries significant risk but also the potential for high rewards. He indicated plans for scaling up the project with iterations such as Dojo 1.5, Dojo 2, and Dojo 3, highlighting its considerable potential amid its inherent risks.
Although Hochul’s press conference celebrated the $500 million investment, Musk took to social media on X to downplay the significance of the figure. He pointed out that while the sum was substantial, Tesla’s expenditure on Nvidia hardware in 2024 would far surpass it.
“In response to the governor’s announcement regarding the Dojo Supercomputer, it’s important to note that $500M, though sizable, only covers a 10k H100 system from Nvidia,” Musk stated in his post on X. “Tesla’s expenditure on Nvidia hardware this year will exceed that amount. The current landscape of AI demands investments of several billion dollars annually to remain competitive.”
