Elon Musk has now introduced a new project that aims to push this idea further. According to Reuters, Musk revealed a joint initiative between Tesla and his AI startup xAI called “Macrohard,” also referred to as “Digital Optimus.”
The project is designed as an AI system capable of imitating the work of traditional software companies.
Grok’s LLM x Tesla-built AI agent
Musk explained that the platform combines xAI’s Grok large language model, which acts as a high-level guide, with a Tesla-built AI agent capable of observing and interacting with a computer screen.
The agent processes live video from the screen and understands keyboard and mouse actions in real time.
The goal is to enable the system to perform software-related tasks more automatically. According to Reuters, Musk suggested that the technology could potentially replicate the functions normally handled by entire software organisations.
“In principle, it is capable of emulating the function of entire companies,” Musk said, adding that the name Macrohard is a humorous reference to Microsoft.
The announcement comes at a time when interest in agentic AI systems is increasing. These AI tools are designed to complete complex digital tasks without constant human supervision.
Reuters noted that the launch of similar systems, such as Anthropic’s Claude Cowork, has already raised concerns among software investors who worry that AI agents could disrupt traditional software business models.
Runs on Tesla’s in-house AI4 chip
Musk said the new system will run on Tesla’s in-house AI4 chip while relying on NVIDIA-powered servers used by xAI. He described the combination as a cost-efficient approach to building powerful AI computing infrastructure.
The collaboration between Tesla and xAI follows a series of major financial moves involving Musk’s companies. In January, Tesla agreed to invest about $2 billion to acquire shares in xAI.
More recently, SpaceX acquired xAI through an all-stock transaction that valued SpaceX at around $1 trillion and xAI at about $250 billion, according to Reuters.
The merger is seen as a step toward a possible SpaceX initial public offering later this year, with Musk pointing to the potential use of orbital data centres as one of the motivations behind the deal.
Official records from the U.S. Patent and Trademark Office also show that xAI filed a trademark application for “Macrohard” in August 2025, signalling that the project has been under development for some time.
