As first reported by Bloomberg, Tesla is disbanding the team behind Dojo, its in-house AI-training supercomputer, and reassigning remaining staff to other projects within the company. This marks a shift in the company's compute sourcing strategy for its AI-focused initiatives such as autonomous driving and the Optimus robot.

The disbanding of Tesla’s Dojo efforts follows the departure of around 20 workers, who left the automaker to start their own AI company dubbed DensityAI focused on data center services for industries.

The supercomputer was designed around custom training chips to process vast amounts of data and video to train autonomous-driving software.

The move to unwind the AI division comes as 20 Dojo employees have left for DensityAI, a new startup led by its former head, Ganesh Venkataramanan.

Tesla is shutting down Dojo, the supercomputer project that was at one time key to the automaker's driverless-vehicle technology. Dojo's head is also leaving the company.

Tesla CEO Elon Musk has ordered to shut down its Dojo supercomputer team, with team leader Peter Bannon departing the company, Bloomberg News reported on Thursday, citing people familiar with the matter.

Dojo head Peter Bannon has also reportedly left Tesla as the company shifts away from training chips on in-house tech.

This decision comes as Tesla aims to enhance its collaboration with external technology partners, including Nvidia, Advanced Micro Devices.

TeslaTSLA is reportedly scrapping its Dojo supercomputer effort and disbanding the team, as CEO Elon Musk shifts to relying on NvidiaNVDA and Advanced Micro DevicesAMD for compute chips along with Samsung for manufacturing.