xAI (x.AI) has apparently paused on its effort to build Macrohard, an artificial intelligence project that would allow developers to simulate the software creation done by companies like Microsoft (MSFT), according to Business Insider.
Instead, CEO Elon Musk has shifted focus to developing Tesla’s (TSLA) Digital Optimus, an AI agent for the electric vehicle company, the report said. This would be a digital version of the humanoid robot Optimus that Tesla has been developing since 2021. It is expected to eventually perform “autonomous software interaction, code generation, and real-time decision-making.” Musk wants it to go beyond analyzing screenshots and instead process a continuous stream of information and responses.
Musk initially revealed the Macrohard project in August 2025.
“It’s a tongue-in-cheek name, but the project is very real!” Musk said in a post on X at the time. “In principle, given that software companies like Microsoft do not themselves manufacture any physical hardware, it should be possible to simulate them entirely with AI.”
On xAI’s website, there were zero job openings for its Macrohard department as of Wednesday morning. More than 20 xAI engineers working on Macrohard have either left the company or shifted to different departments over the past few months.
xAI recently merged with Musk’s SpaceX (SPACE). Tesla announced in late January it plans to invest $2B into xAI.
“But if there are things which xAI can help accelerate our progress, then why should we not do that? And that is the reason why we’ve gone ahead with such an investment because this is part of the strategic initiative,” said Tesla CFO Vaibhav Taneja.