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Rethinking Strategy: Why Tesla Should Consider Abandoning Dojo for NVIDIA

Tesla should abandon Dojo and just use NVIDIA for its computer chips. Then, Tesla should take the resources being used on Dojo and put them to work in AI for FSD, Bot, and building the compact car.
Rethinking Strategy: Why Tesla Should Consider Abandoning Dojo for NVIDIA

The Case for NVIDIA Over Tesla's Dojo

In the rapidly evolving landscape of artificial intelligence and autonomous driving technology, Tesla has embarked on an ambitious journey with its Dojo project – a custom-built supercomputer designed for training AI models.

The original intent of this computer chip was that it would be superior to NVIDIA and its computer chips - a chip in its own league. However, this is proving to be more difficult than anticipated given the recent Q4 2023 Tesla earnings call. This is because Elon very clearly calls Dojo: "High risk, high reward." Why take the risk if it's such a high risk and focus on more sure things like FSD, Bot, and the compact car?

An argument can be made for Tesla to reconsider this path and instead leverage NVIDIA's expertise and technology in this domain. NVIDIA's chips will still get Tesla to a path of full autonomous vehicles and the upcoming compact "Redwood" vehicle, which Tesla will start building in the 2nd half of 2025 will work just fine with NVIDIA chips.

Proven Expertise in AI and Deep Learning

NVIDIA is a recognized leader in the field of artificial intelligence, particularly in deep learning and AI training. Their GPUs are the backbone of many AI training environments globally, known for their efficiency, reliability, and advanced capabilities.

NVIDIA has spent years refining its technology, placing them at the forefront of AI hardware development.

In the same way that Tesla is the leader in EVs, NVIDIA is the leader in AI computer chips. This is also why Apple will not likely be able to build an "Apple Car" that beats Tesla's EVs.

Cost-Effectiveness and Focus

Developing custom hardware like Dojo is a resource-intensive endeavor, requiring significant investment in R&D, manufacturing, and ongoing updates.

For Tesla, a company whose primary expertise lies in electric vehicles and energy solutions, the diversion of resources into a highly specialized and competitive field like AI chip manufacturing may not be the most cost-effective strategy.

Continuing to partner with NVIDIA and giving up Dojo could free up valuable resources, allowing Tesla to focus on its core competencies while still benefiting from cutting-edge AI technology.

Rapid Pace of Technological Advancements

The field of AI and deep learning is advancing at an unprecedented pace. Maintaining a competitive edge in this space requires constant innovation and updates.

NVIDIA, being dedicated to this field, is well-positioned to keep up with these rapid changes. Tesla, by using NVIDIA's technology, could ensure that it always has access to the most advanced AI hardware without the need to constantly reinvent its own solutions.

Tesla is a heavily vertically integrated company - however, this is one area that they may not be able to do as well as NVIDIA.

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Scalability and Flexibility

NVIDIA's platforms offer scalability and flexibility, which are critical for a company like Tesla, whose AI demands will continue to grow and evolve.

NVIDIA's ecosystem is designed to support a range of AI applications, from training to inference, across different scales and requirements. This adaptability could be particularly beneficial for Tesla as it expands its AI capabilities in various directions.

Collaboration and Shared Innovation

Tesla could collaborate with NVIDIA and share what it has learned with its Dojo chip, but that won't likely happen.

However, what could be shared is Tesla's real-world data from its fleet of electric vehicles and its experience in autonomous driving software, which could provide valuable insights to NVIDIA, further enhancing their AI platforms.

In turn, Tesla would benefit from NVIDIA's cutting-edge technology and expertise in AI hardware, which could be further modified based on Tesla's needs.

Will Tesla abandon Dojo and just use NVIDIA? That remains to be seen as no definitive answer was given on the Q4 2023 earnings call. However, I would not be surprised to see this happen.

Conclusion

While Tesla's Dojo project is a testament to the company's innovative spirit and commitment to advancing AI technology, there are compelling reasons for Tesla to consider leveraging NVIDIA's technology instead.

Such a strategic shift could provide Tesla with immediate access to the best AI hardware, save on costs and resources, and allow the company to maintain its focus on its core business areas.

In the dynamic world of AI and autonomous driving, collaborations like a potential Tesla-NVIDIA partnership could be the key to staying ahead in the race. This assumes Tesla could get NVIDIA to modify their chips to fit Tesla's needs more effectively.

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What do you think about Tesla abandoning its Dojo project and, instead, just using NVIDIA?

Share this article with friends and family and on social media - or leave a comment below. You can view my most recent articles here for further reading. I am also on X/Twitter where I post more than just articles daily, as well as LinkedIn! You can also find short Tesla videos on my TikTok account. Thank you so much for your support!

Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn or watch my short Tesla videos on TikTok to stay in touch and follow my Tesla and EV news coverage.

Image Credit: DALL-E AI

Article Reference: My Own Thoughts, some based on the latest earnings call for Tesla on Q4 2023

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