Elon Musk Unveils Tesla’s Ambitious Dojo3 Initiative for Space-Based AI Computing
In a striking announcement over the long weekend, Elon Musk revealed Tesla’s plans to reinvigorate its Dojo3 project—a once-abandoned third-generation AI chip initiative. However, unlike its previous focus on terrestrial self-driving model training, Dojo3 is now pivoting towards “space-based AI compute,” aiming to explore the potential of artificial intelligence beyond our planet.
This significant shift follows the earlier dissolution of the Dojo project, which transpired five months ago after the departure of Peter Bannon, the team leader. Approximately 20 former Dojo employees transitioned to DensityAI, a newly established AI infrastructure startup spearheaded by ex-Tesla personnel.
During the initial phase of the Dojo shutdown, Tesla opted to increase its dependence on industry leaders like Nvidia and AMD for computational needs, as well as Samsung for chip production, moving away from in-house silicon development. Musk’s recent statements indicate a strategic change in this approach.
Highlighting advancements in chip design, Musk emphasized that Tesla’s in-house AI5 chip, manufactured by TSMC, remains robust and is intended to facilitate the company’s automated driving capabilities and the development of Optimus humanoid robots. Furthermore, Tesla’s $16.5 billion agreement with Samsung aims to create AI6 chips that will enhance the capabilities of Tesla vehicles and data centers.
Musk described the revived Dojo3 initiative as a “moonshot” dedicated to space-based AI computing. In an effort to rebuild the disbanded team, he reached out on social media, inviting engineers to contribute to what he believes will become the world’s highest-volume chips.
The timing of this announcement aligns with recent developments at CES 2026, where Nvidia introduced Alpamayo, an open-source AI model for autonomous driving that poses a direct challenge to Tesla’s Full Self-Driving (FSD) software. Musk acknowledged the complexities involved in addressing rare edge cases in driving, expressing hope for Nvidia’s success.
Musk, along with other tech leaders, envisions a future where data centers could operate in space, citing the burden on Earth’s power grids. Reports indicate that Musk intends to fund this vision through SpaceX’s upcoming IPO, leveraging Starship to deploy a network of computing satellites capable of capturing solar energy around the clock.
While the idea of space-based AI data centers is compelling, it faces considerable technical hurdles, particularly regarding the cooling of high-performance computing in a vacuum. Musk’s pattern of presenting ambitious concepts suggests a commitment to transforming visionary ideas into technological realities.
