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Hardware & electrical equipment

Tesla Dojo supercomputer lead’s departure could be positive for Nvidia

Reports that Ganesh Venkataramanan, the leader of Tesla Inc (NASDAQ:TSLA)'s Dojo Supercomputer effort, is no longer at the company could be a positive development for chipmaker Nvidia Corporation (NASDAQ:NVDA), analysts at Wedbush believe.

Citing sources with knowledge of the matter, Bloomberg on Thursday reported that Venkataramanan had left Tesla and the Dojo project is now being led by former Apple Inc (NASDAQ:AAPL) executive Peter Bannon.

Venkataramanan was hired by Tesla in 2016 after spending nearly 15 years at Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) to develop its D1 silicon chips, part of the Dojo supercomputing system.

The Wedbush analysts noted media speculation that his departure from Tesla was due to the second generation of the chips failing to meet expectations.

“If this speculation is accurate, it could be a modest positive result for NVDA, which has supplied silicon previously to Tesla for its supercomputer efforts,” they wrote in a note to clients.

The Dojo supercomputer is a custom platform designed to use data from Tesla’s vehicles to train the company’s autonomous driving software. The company said it went into production in July 2023.

Tesla is yet to comment on reports of Venkataramanan's departure. The company’s shares were flat at US$242.70 in early trade on Friday.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on X, formerly known as Twitter, @emilyjjarvie

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