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Tesla shuts down Dojo supercomputer team to streamline chip design efforts

Tesla CEO Elon Musk ordered the company to disband its Dojo supercomputer team, which had been designing and using its D1 chips to train its self‑driving and AI models, Bloomberg reports.

“It doesn’t make sense for Tesla to divide its resources and scale two quite different AI chip designs,” Musk said in a post on X late last night. “The Tesla AI5, AI6 and subsequent chips will be excellent for inference and at least pretty good for training.”

Tesla plans to increasingly work with outside companies like Nvidia and Advanced Micro Devices to handle training and compute.

Musk also runs AI company xAI, which has its own supercomputer and a substantial business relationship with Tesla. He recently said his electric vehicle company should invest in his AI company.

“It doesn’t make sense for Tesla to divide its resources and scale two quite different AI chip designs,” Musk said in a post on X late last night. “The Tesla AI5, AI6 and subsequent chips will be excellent for inference and at least pretty good for training.”

Tesla plans to increasingly work with outside companies like Nvidia and Advanced Micro Devices to handle training and compute.

Musk also runs AI company xAI, which has its own supercomputer and a substantial business relationship with Tesla. He recently said his electric vehicle company should invest in his AI company.

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Amazon closes at all-time high

Fresh off strong earnings Thursday, Amazon saw its stock price end the week at a record closing high of $244.22.

The stock is up 10% so far this year.

The e-commerce and cloud giant beat analysts’ revenue and earnings, and its massive gain was responsible for more than all of the positive return delivered by the SPDR S&P 500 ETF on Friday.

tech
Rani Molla

Google uses an AI-generated ad to sell AI search

Google is using AI video to tell consumers about its AI search tools, with a Veo 3-generated advertisement that will begin airing on TV today. In it, a cartoonish turkey uses Google’s AI Mode to plan a vacation from its farm before it’s eaten for Thanksgiving.

Like other AI ad campaigns that have opted to depict yetis or famous artworks rather than humans, Google chose a turkey as its protagonist to avoid the uncanny valley pitfall that happens when AI is used to generate human likenesses.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

tech
Rani Molla

Amazon, Alphabet, Meta, and Microsoft combined spent nearly $100 billion on capex last quarter

The numbers are in and tech giants Amazon, Alphabet, Meta, and Microsoft spent a whopping $97 billion last quarter on purchases of property and equipment. That’s nearly double what it was a year earlier as AI infrastructure costs continue to balloon and show no sign of stopping. Amazon, which reported earnings and capital expenditure spending that beat analysts’ expectations yesterday, continued to lead the pack, spending more than $35 billion on capex in the quarter that ended in September.

Note that the data we’re using here is from FactSet, which strips out finance leases when calculating capital expenditures. If those expenses were included the total would be well over $100 billion last quarter.

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