Tesla Inc. is disbanding its Dojo team and its leader will leave the company, according to people familiar with the matter, upending the automaker’s effort to build an in-house supercomputer for developing driverless-vehicle technology.

Tesla is shutting down Dojo, the supercomputer project that was at one time key to the automaker's driverless-vehicle technology. Dojo's head is also leaving the company.

The disbanding of Tesla’s Dojo efforts follows the departure of around 20 workers, who left the automaker to start their own AI company dubbed DensityAI focused on data center services for industries.