New York Governor Kathy Hochul confirmed the news during a hearing on the state's economic developments, stating that the project will contribute significantly to the local economy.

The Dojo supercomputing cluster, to be constructed at the New York Gigafactory, is a part of Tesla's ambitious plan to advance its artificial intelligence (AI) capabilities. Governor Hochul applauded Tesla's decision, emphasizing the potential economic benefits that the investment will bring to Buffalo and the surrounding region.

Governor Hochul further mentioned the simultaneous construction of an AI supercomputer at the State University of New York (SUNY), which will complement the Dojo project. According to Hochul, the overall investment in these AI initiatives will amount to $500 million, with a blend of public and private funding.

Elon Musk, CEO of Tesla, confirmed the company's plans to develop the supercomputing cluster. However, he clarified that the $500 million investment would cover only a smaller Nvidia system. Musk highlighted the substantial financial commitment required to stay competitive in the AI field, noting that "table stakes" for major players are in the range of billions of dollars per year.

Currently, Tesla's Gigafactory in Buffalo focuses on manufacturing solar panels, solar roofs, and electrical components for its Superchargers. It also employs staff dedicated to Autopilot data analysis, making it an essential facility for the company.

While a specific timeline for the installation of the Dojo supercomputer was not provided, Governor Hochul disclosed that a state grant of $275 million, along with over $400 million in public and private funding, will support the "Empire AI" program at SUNY.

Governor Hochul also highlighted the growing significance of the global AI market, which is valued at approximately $150 billion. Experts predict that this number will skyrocket to $1.3 trillion in the coming years, underscoring the immense potential of AI technologies.

The Dojo supercomputer is expected to play a pivotal role in processing vast amounts of sensor data to enhance AI training using real-world driving footage. Apart from powering Tesla's Full Self-Driving (FSD) beta systems, Dojo is anticipated to have numerous other applications, solidifying its position as one of the world's most powerful computing clusters.

The news of Tesla's substantial investment in the construction of the Dojo supercomputer follows the departure of project lead Ganesh Venkataramanan last month. Elon Musk previously revealed that Dojo had already been operational, running important tasks for several months, in June of last year.

With the Dojo supercomputer poised to contribute significantly to Tesla's AI capabilities and propel advancements in autonomous driving technology, excitement continues to build around the project. The investment marks a major move by Tesla to maintain its position at the forefront of the rapidly evolving AI sector.

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