Morgan Stanley’s report stating that Tesla’s Dojo computer alone is worth over $50 billion caused the stock price to rise by 6%. Dojo refers to the supercomputer that Tesla unveiled in 2021, which represents AI machine learning. The technology learns situations through video data, contrasting with the hard-coding approach. Hard coding refers to inputting all possible scenarios through machine learning to control accordingly.
Elon Musk of Tesla announced during the 2022 AI Day that they will build the entire cluster by the first quarter of 2023. However, Morgan Stanley recently revealed their plan to increase the capacity to 100 exaflops by the end of 2024, which they announced would be released this summer.
Adam Jonas, an analyst at Morgan Stanley, stated, “Autonomous vehicles are referred to as the mother of all AI projects. In exploring autonomy, Tesla has developed an advanced supercomputing architecture using custom silicon to put Tesla in an asymmetric advantage in the $10 trillion market.” He claimed that the Dojo computer alone could add value of over $50 billion.
He added that Tesla’s advantage lies in its ability to design its AI chips. He also evaluated that it could be a direct revenue source in addition to accelerating autonomous driving efforts.
Tesla announced that they will start producing the Dojo supercomputer, unveiled during the 2019 Autonomy Day and the 2021 AI Day, in July. Dojo supercomputer refers to a specially designed supercomputer platform for neural network training. It is a self-supervised learning process for neural networks used in autonomous driving. Dojo is a Japanese term that means a training facility for Japanese martial arts.
When Tesla announced the 4680 battery cell in 2020, it attracted much attention, and the stock price skyrocketed. However, at this point, the actual battery innovation has come from Chinese suppliers such as BYD’s Blade battery, CATL’s LFP battery, and sodium batteries. As a result, there are criticisms that Tesla has a long history of exaggerating schedules and having excessive expectations for results.
Unlike other companies, Tesla claims their autonomous driving technology can be achieved with cameras and the Dojo computer. They reiterated their claim that it can be performed without an internet connection through the test drive of FSD version 12 announced last month. However, there are talks that it will only be possible again in a year, contradicting the initial promise of releasing the final version by the end of this year. Elon Musk of Tesla has repeatedly mentioned ‘1 year later’ since unveiling Autopilot and FSD in 2016.
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