Musk unveils joint Tesla-xAI project 'Macrohard', eyes software disruption


Tesla CEO Elon Musk attends the Saudi-U.S. Investment Forum, in Riyadh, Saudi Arabia, May 13, 2025. REUTERS/Hamad I Mohammed

March 11 (Reuters) - Elon Musk ⁠on Wednesday unveiled a joint project between Tesla and his ⁠artificial intelligence startup xAI, which he called "Macrohard" or "Digital Optimus" and ‌said that it was a system capable of emulating the functions of software companies.

In a post on his social media platform X, Musk said the project pairs xAI's ​Grok large language model, acting as a high-level "navigator," ⁠with a Tesla-developed AI agent ⁠that processes real-time computer screen video and keyboard and mouse actions.

The launch ⁠of ‌Anthropic's Claude Cowork, which can perform a range of computer-based tasks autonomously, has already spooked software investors who fear that ⁠agentic AI can disrupt established business models.

Musk's xAI ​was previously building ‌Macrohard as an AI project that would allow developers to simulate ⁠software creations ​by companies like Microsoft.

"In principle, it is capable of emulating the function of entire companies. That is why the program is called MACROHARD, a funny ⁠reference to Microsoft," Musk said on Wednesday.

Musk said ​the system would run on Tesla's in-house AI4 chip paired with xAI's Nvidia-based server hardware, describing the combination as cost-competitive.

The announcement comes after Tesla ⁠entered into an agreement in January to invest about $2 billion to acquire shares in xAI.

SpaceX acquired xAI last month in an all-stock deal that valued the rocket maker at $1 trillion and xAI at $250 billion, coming ​ahead of a potential blockbuster initial public ⁠offering for SpaceX later this year, with Musk citing orbital data centers ​as a main reason for the merger.

Records ‌from the U.S. Patent and Trademark Office ​show that xAI filed a trademark application for "Macrohard" in August 2025.

(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)

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