Tesla (TSLA) Stock Soars as Optimism Surrounds Dojo Supercomputer

Tesla (TSLA) Stock Soars as Optimism Surrounds Dojo Supercomputer

Tesla’s (TSLA) stock is experiencing a substantial surge in pre-market trading, thanks to an optimistic new report that has emerged regarding the automaker’s cutting-edge Dojo supercomputer. This exciting development comes courtesy of Morgan Stanley, a renowned financial institution that has significantly raised its price target for Tesla’s stock due to the promising prospects associated with Dojo.

Tesla (TSLA) Stock Soars as Optimism Surrounds Dojo Supercomputer

Dojo: Revolutionizing AI Machine Learning

Dojo stands as Tesla’s revolutionary custom supercomputer platform, meticulously crafted from the ground up, exclusively designed to fuel AI machine learning. More specifically, it’s tailored for video training using the extensive video data derived from Tesla’s fleet of vehicles. Although Tesla already boasts a collection of formidable NVIDIA GPU-based supercomputer clusters, recognized as some of the world’s most powerful, Dojo takes innovation a step further. This custom-built supercomputer harnesses purpose-designed chips and an entire infrastructure conceived and engineered by Tesla itself.

Unleashing the Power of Neural Nets

Dojo is set to elevate Tesla’s capability in training neural nets with video data, a pivotal element in advancing the computer vision technology that underpins its self-driving ambitions.

Tesla initially unveiled its ambitious Dojo project at its AI Day in 2021, though back then, the company was still in the process of scaling up its efforts. With only the first chip and training tiles in place, Tesla was diligently working on assembling a full-fledged Dojo cabinet and cluster, colloquially referred to as the “Exapod.”

Fast forward to AI Day 2022, and Tesla showcased considerable progress, including the introduction of a fully operational system tray. However, despite the optimism surrounding the timeline for Dojo, the first quarter of 2023 passed without any significant updates on its operational status. Finally, this summer brought the long-awaited news that Dojo had begun operations, with a carefully outlined plan to gradually increase its capacity to a staggering 100 Exa-flops by the end of 2024.

Dojo’s Potential Impact on Tesla’s Future

With Tesla aggressively pivoting towards neural net-based computer vision not just for its self-driving capabilities but also for vehicle controls, the company now finds itself constrained by its computing power. Enter Dojo, poised to become a game-changer in this regard. According to analysts, Dojo alone could potentially contribute an astonishing $500 billion in value to the company.

Tesla’s distinctive approach of designing its AI chips explicitly for video-based AI training could offer the company a substantial edge in this competitive landscape. Beyond its role in accelerating self-driving technology, Dojo is also being explored as a potential direct revenue generator, a concept previously suggested by Tesla’s CEO, Elon Musk.


The optimism surrounding Tesla’s Dojo supercomputer is translating into a remarkable surge in its stock value. With its ambitious plans to revolutionize AI machine learning and the potential to address Tesla’s compute limitations in self-driving technology, Dojo is more than just a supercomputer – it’s a catalyst for Tesla’s future growth and success. Morgan Stanley’s bullish outlook reflects the excitement and potential that this groundbreaking development holds for Tesla and its investors. As Tesla continues to innovate and push the boundaries of technology, Dojo is undoubtedly a key player in the company’s quest for automotive and AI dominance.


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