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Musk Unveils Joint Tesla-xAI Project 'Macrohard', Eyes Software Disruption

Tesla and xAI combine Grok large language model with Tesla AI4 chip in a $2 billion project Musk says can emulate entire companies, challenging previous claims of separation.

  • On Wednesday, March 12, 2026, Elon Musk unveiled Digital Optimus, also called Macrohard, a joint xAI–Tesla project using xAI's Grok to power an AI agent.
  • Part of Tesla's $2 billion investment agreement with xAI, the announcement follows SpaceX's acquisition of xAI last month amid plans for an IPO later this year and xAI burning roughly $1 billion monthly.
  • Musk said the system will run on Tesla's AI4 chip priced at $650, paired with xAI's Nvidia-based cloud hardware, with Grok as the master conductor navigating real-time five seconds of screen video and keyboard/mouse actions.
  • Amid ongoing shareholder litigation, the announcement contradicts Musk's September 2024 post that 'There is no need to license anything from xAI' and suggests Tesla is a customer of xAI, strengthening shareholder claims.
  • By shifting the reasoning layer to xAI, executives said in January 2026 their goal was to develop self‑sufficient AI for robots like Tesla's Optimus, impacting the SpaceX–xAI IPO and Musk's separation narrative.
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xAI was developing the project to allow developers to simulate company software creations such as Microsoft

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Next Big Future broke the news in United States on Wednesday, March 11, 2026.
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