Elon Musk envisions his new supercomputers driving growth for his enterprises.

Elon Musk, as CEO of Tesla and his new AI startup xAI, aims to revolutionize the tech industry with his plans to develop cutting-edge supercomputers.

In January, he argued that Tesla should be perceived as an AI/robotics company rather than a car company. The custom-built supercomputer named Dojo is crucial to this shift. Tesla has announced plans to invest $500 million in building the supercomputer in Buffalo, New York. Additionally, the company is constructing another supercomputer cluster, called Cortex, at its headquarters in Austin, Texas.

Tesla cars capture large amounts of video and data, which will be used to train AI models in a dojo. The objective is to enhance Autopilot, Tesla's suite of driver assistance features, and its more advanced Full Self-Driving or FSD system. FSD features cost $99 per month and include automatic lane changes, parking, and stopping for traffic lights and stop signs.

"According to Steven Dickens, chief technology advisor at the Futurum Group, Tesla has sold over 5 million cars, each equipped with eight cameras. If these cars are driven an average of 10,000 miles per year, they stream back a vast amount of video data to Tesla. With this training set, Tesla can develop Full Self-Driving and is getting closer to achieving it."

Although Tesla's Autopilot and FSD systems are not fully autonomous, the company's website states that they require active driver supervision. In the past, regulators have criticized Tesla for falsely advertising the capabilities of these systems. However, achieving full autonomy is crucial for Tesla, as its valuation is largely based on its plans to bring robotaxis to market, according to some analysts.

The company's latest earnings report showed lackluster results, and it has fallen behind other automakers working on autonomous vehicle technology. For example, Waymo, which is owned by Google, is already commercially operating fully autonomous taxis in several U.S. cities. Additionally, Cruise and Zoox are also working on autonomous vehicles. In China, competitors include Baidu and Didi.

Tesla's Dojo, which Musk claims has been performing tasks for the company since 2023, is expected to alter the situation. The originally scheduled Tesla robotaxi event, originally slated for August, has been postponed and is now anticipated to take place in early October.

Tesla's humanoid robot, Optimus, can be trained at a dojo, and the company plans to use it in its factories starting next year. Musk has stated that Tesla will spend $10 billion this year on AI.

In addition to investing in supercomputers for his new AI venture xAI, Musk is also developing large language models and AI products, such as its chatbot Grok, as an alternative to those created by OpenAI.

Although Elon Musk was one of OpenAI's founders, he left the company in 2018 and has since become one of its harshest critics. In June, it was announced that xAI would construct a supercomputer in Memphis, Tennessee to train Grok. Early in September, Musk disclosed that a portion of the Memphis supercomputer, known as Colossus, was already operational.

To learn more about Elon Musk's supercomputer plans, watch the video.