Elon Musk Reveals Macrohard as an xAI-Tesla Joint Project to Simulate Company Operations

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On March 11, 2026, Elon Musk announced a project revealing Macrohard, also known as Digital Optimus, as a joint xAI-Tesla initiative under their project funding update. Grok acts as the primary controller, directing Digital Optimus to process real-time screen video and input actions from the previous 5 seconds. The system will run on Tesla’s AI4 hardware at low cost and function as the only real-time intelligent AI. Musk stated that the AI can simulate entire company operations, hence the name Macrohard—a reference to Microsoft.

BlockBeats news, on March 11, Musk posted that Macrohard or Digital Optimus is a joint project between xAI and Tesla, part of Tesla’s investment agreement with xAI. Grok serves as the controller/navigator, possessing deep understanding of the world and responsible for directing Digital Optimus. Digital Optimus processes and executes real-time computer screen video and keyboard/mouse inputs from the past 5 seconds. Grok functions like a more advanced and sophisticated navigation system.


You can think of Digital Optimus AI as System 1 (the instinctive part of the brain), while Grok represents System 2 (the thinking part of the brain). It will run on the ultra-low-cost Tesla AI4 ($650) while still efficiently utilizing more expensive xAI Nvidia hardware. Moreover, it will be the only real-time intelligent AI system. This is significant.


In principle, Digital Optimus AI can simulate the entire operation of a company. That’s why the program is named MACROHARD—a playful nod to Microsoft. No other company has achieved this yet.

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