Elon Musk announces the joint project Macrohard between Tesla and xAI

Investing.com – Elon Musk announced on Wednesday a joint project between Tesla and his AI startup xAI, called Macrohard or Digital Optimus, which he described as a system capable of simulating the functions of a software company.

Musk posted on his social media platform X that the project combines xAI’s Grok large language model (acting as an advanced navigator) with AI agents developed by Tesla, which can handle real-time computer screen videos as well as keyboard and mouse operations.

Claude Cowork, launched by Anthropic, can autonomously perform a range of computer-based tasks, raising concerns among software investors who worry that agent-based AI could disrupt existing business models.

Musk’s xAI has previously been building Macrohard as an AI project that allows developers to simulate software creation by companies like Microsoft (NASDAQ: MSFT).

“In principle, it can simulate the functions of an entire company. That’s why the program is called MACROHARD, a fun reference to Microsoft,” Musk said on Wednesday.

Musk stated that the system will run on Tesla’s internal AI4 chips, paired with xAI’s hardware based on Nvidia (NASDAQ: NVDA) servers, which he claims is cost-competitive.

Before this announcement, Tesla reached an agreement in January to invest about $2 billion to acquire shares of xAI.

Last month, SpaceX acquired xAI through a full stock transaction, valuing the rocket manufacturer at $1 trillion and xAI at $250 billion. This move occurred ahead of SpaceX’s potential initial public offering later this year, with Musk citing orbital data centers as a primary reason for the merger.

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