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ToggleRecently , tech media outlet Business Insider reported that xAI had suspended its "Macrohard" AI project, which aimed to simulate the operations of a software company, and shifted its focus to developing "Digital Optimus," a digital humanoid robot for Tesla. However, this news was immediately refuted by both xAI and Tesla CEO Elon Musk.
Macrohard and Digital Optimus combine their strengths
Musk clarified in a post on the X platform that Macrohard and Digital Optimus are now essentially "the same thing," and a joint project driven by the two companies following Tesla's recent investment in xAI. He emphasized that the goal of the project is not just to analyze screenshots, but to process continuous information streams and react in real time, ultimately achieving autonomous software interaction, code generation, and real-time decision-making.
Musk further explained the operational architecture of this "joint brain":
- System Two (Thinking Center): Commanded by Grok, xAI's core model. It possesses a profound understanding of the world and is responsible for high-level decision-making and guidance, much like an extremely advanced navigation software.
- System 1 (Intuitive Reaction): Powered by Digital Optimus AI. It processes and executes the computer screen image and keyboard and mouse movements from the past 5 seconds in real time.
Hardware advantages and the ambition to "simulate an entire company"
Another major competitive advantage of this system lies in its hardware cost-effectiveness. Musk pointed out that the system will run highly competitively on the Tesla AI4 chip, which costs only $650, and requires only a small amount of the relatively expensive xAI Nvidia hardware. He confidently declared:
"This will be the only truly real-time intelligent AI system. This is a big deal."
Musk reiterated his vision when he first unveiled the project in August 2025: since software companies like Microsoft don't manufacture physical hardware, it's theoretically possible to completely simulate their operation using AI. This is also why the project is named "MACROHARD" (a play on Microsoft's name). He stated frankly:
"No other company has been able to do this yet."
Behind resource restructuring and strategic investment
Despite Musk's confidence in the plan, external doubts are not unfounded. As of Wednesday morning, the Macrohard division on xAI's official website had zero job openings; and in the past few months, more than 20 engineers involved in the project have left or transferred to other departments. This may be the main reason why foreign media speculate that the project has been suspended, but it could also indicate that the team's resources are undergoing a major restructuring.
Meanwhile, Musk's companies are accelerating consolidation. Besides xAI's recent merger with SpaceX, Tesla also announced in late January plans to invest up to $2 billion in xAI. In response, Tesla CFO Vaibhav Taneja defended the move, stating:
"If xAI can help accelerate our progress, why wouldn't we do it? That's why we're pushing this investment forward, because it's part of our strategic plan."
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He earned $300,000 on Polymarket by counting Musk's tweets.
