That's certainly Elon's talking point. The idea is that solving L5 simply requires training big enough neural nets. And to train neural nets big enough in a reasonable amount of time requires massive computing power. Ergo, with big enough computing power like Dojo, solving L5 should just be a matter of time. I think Elon is probably right in theory but completely wrong on how long it will take.
I think Dojo will help Tesla make a lot of progress with FSD. But I am skeptical of Elon's timeline of solving FSD by end of this year. The fact is that every leader in FSD uses massive computing power to training large neural nets. Tesla is not doing anything unique with Dojo. Other companies have supercomputers bigger than Dojo. For example, Waymo has all the power of Google supercomputers which have more computing power than Dojo. Baidu (the Chinese Google) has supercomputers with more computing power than Dojo. Both Waymo and Baidu have deployed driverless robotaxis more capable than FSD beta. Waymo is poised to have driverless robotaxis in 4 cities by the end of this year! Yet, with all that compute and actual driverless robotaxis, Waymo and Baidu have not solved L5 yet. Simply having massive computing power does not automatically solve FSD. It also matters how you use that computing power. You need the right data and the right training to solve FSD. Having massive computing power just makes the training go faster, which is very important, but is not the only requirement.
As I said in another thread, Elon's prediction of L4 or L5 makes no sense. L5 is not more reliable L4. So it is not a matter of FSD achieving L4 or L5 depending on how reliable it is. L4 and L5 have completely different ODDs. L4 can have any limited ODD. For example, L4 can have an ODD as small as a 10 sq mi geofence or 99% of US roads except bad weather. L5 requires an "unlimited" ODD, defined as all paved roads and all conditions that a typical human driver can handle. So I don't think we should mix L4/L5. IMO, Tesla could certainly do L4 by end of this year, if the ODD was small enough. But L5 is very different. I don't think Tesla will achieve L5 by end of this year. I am not saying that Tesla will never solve L5, I just think it will take longer than Elon thinks. I don't think it will happen by end of this year. Tesla told the CA DMV that removing driver supervision requires an intervention rate of 1-2M miles per intervention! So Tesla would need to achieve 1-2M miles per intervention everywhere in the entire US, to achieve L5 in the US. Tesla is nowhere close to that. Will Dojo allow Tesla to go from the current intervention rate to 1-2M miles per intervention in just the next 4-5 months? Unlikely IMO.
Conclusion: Will Dojo allow Tesla to make lots of progress with FSD? Yes, absolutely. Will Dojo magically solve L5 by end of this year? Unlikely IMO.