However, CEO Elon Musk has described the project as a "long shot bet" with high risk but potentially high payoff. Despite the significant investment, Musk stated that Tesla will spend more on Nvidia hardware in 2024, emphasizing the high costs of remaining competitive in the AI sector. The Buffalo factory, previously known as "Gigafactory 2", has been a source of controversy due to production struggles and a change in focus following Tesla's acquisition of SolarCity in 2016.
Key takeaways:
- Tesla plans to spend $500 million to build a Dojo supercomputer at its Buffalo, New York factory, according to the state’s governor Kathy Hochul.
- The supercomputer is intended to advance Tesla's goal of building a self-driving car, processing video data from its electric vehicles to train the AI that powers its advanced driver assistance software.
- The Buffalo factory, once known as 'Gigafactory 2', has been a problematic location for Tesla, with struggles to produce Solar Roof tiles at scale and a withdrawal by partner Panasonic in 2020.
- Despite the significant investment in the Dojo supercomputer, CEO Elon Musk noted that Tesla will spend more on Nvidia hardware in 2024, emphasizing the high costs of being competitive in the AI field.