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Tesla Disbands Dojo Team Amid Strategic Shift In AI Chip Development

In a move that marks a significant strategic pivot, Tesla has disbanded the team behind its highly publicized Dojo supercomputer program. According to Bloomberg, the company has reassigned remaining Dojo personnel to other data center and compute projects, effectively ending its in-house chip development efforts for driverless technology.

Emergence Of Densityai And Shifting Talent Dynamics

The restructuring comes on the heels of roughly 20 key team members departing to form DensityAI, a new AI startup positioned to develop chips, hardware, and software for advanced data centers. Founded by former Tesla executives including Ganesh Venkataramanan, Bill Chang, and Ben Floering, DensityAI is expected to leverage its deep industry expertise to drive innovation in robotics, AI agents, and automotive technologies.

Redefining Tesla’s Identity As An AI And Robotics Leader

CEO Elon Musk has long positioned Dojo as a cornerstone in Tesla’s vision for full self-driving capabilities, highlighting its potential to process immense volumes of video data—a critical component for transitioning Tesla into an AI and robotics company. Despite initial fanfare and lofty expectations, recent developments including a limited robotaxi trial and mounting reports of problematic driving behavior have underscored the need for a strategic redirection.

External Partnerships And The New Chip Strategy

In light of these changes, Tesla is increasingly pivoting towards technology partners such as Nvidia, AMD, and Samsung. The company’s recent $16.5 billion agreement with Samsung to manufacture AI6 inference chips exemplifies this transition. These chips are designed to power a range of applications from Full Self-Driving (FSD) technologies to Tesla’s Optimus humanoid robots and high-performance AI training in data centers.

Implications For Tesla’s Future Trajectory

Musk’s comments during Tesla’s second-quarter earnings call hinted at potential redundancies as the company seeks convergence between Dojo’s initial vision and the emerging capabilities of its new chip strategies. Coupled with a $29 billion pay package recently offered to retain Musk, these developments reflect a broader recalibration of Tesla’s focus towards external collaborations and scalable AI innovations.

As Tesla continues to navigate these transformative shifts, industry analysts will be closely watching to see how the company reconciles its ambitious AI aspirations with the realities of dynamic technological and market conditions.

EU E-Commerce VAT Systems Generate €257.9 Million Revenue for Cyprus in 2024

Robust Revenue Growth Through Streamlined VAT Collection

Cyprus has demonstrated a significant fiscal boost in 2024 with €257.9 million generated from the European Union’s e-commerce VAT systems, according to Tax Commissioner Sotiris Markides. This impressive performance underscores the effectiveness of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) frameworks in simplifying cross-border tax compliance.

Simplified Procedures for EU and Non-EU Businesses

The OSS system allows Cyprus-registered businesses to streamline VAT declaration and payment on sales to consumers in other EU countries. Companies simply register on the local OSS platform, apply the consumer’s VAT rate, aggregate their submissions quarterly or monthly, and remit a single consolidated payment. Subsequently, Cyprus allocates the appropriate share to each respective EU country. This efficient process extends to non-EU sellers as well, who can have their intra-EU distance sales managed under the Union Scheme.

Breakdown of VAT Revenue Streams

Last year’s declarations under the various schemes illustrate the system’s broad reach: €217.9 million was collected via the Union Scheme, €36.9 million through the Non-Union Scheme, and €3.1 million via the Import Scheme. While the Union Scheme caters to both EU and non-EU sellers engaging in distance sales, the Non-Union Scheme specifically accommodates non-EU firms delivering services to EU consumers. Furthermore, the Import Scheme targets goods valued at less than €150 that are imported from outside the EU.

Implications and Broader Impact

Implemented in July 2021 as an evolution from the more limited MOSS system, these reforms have not only consolidated tax collection through an expansive OSS but also integrated the IOSS for low-value imports. By designating certain online marketplaces as “deemed suppliers,” the new framework ensures that VAT collection is both efficient and equitable. Across the EU, these mechanisms have generated over €33 billion in VAT revenues in 2024, reflecting a successful effort to simplify tax compliance, reduce administrative burdens, and promote fair taxation across the bloc.

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