Musk announced Macrohard, a purely AI-based software company operating under xAI, on August 22, 2025, posing a direct challenge to Microsoft. The venture's name is a play on words that pokes fun at Microsoft, though Musk emphasized that the project is genuine and serious. The entrepreneur stated that since software companies like Microsoft do not manufacture physical hardware, their entire operations can be simulated using AI. And this is what he's now planning to achieve with his newly announced business.
Musk had previously hinted at Macrohard's creation when he discussed forming a multi-agent AI software company powered by xAI's Grok chatbot in July 2025. According to the United States Patent and Trademark Office, xAI filed for the Macrohard trademark on August 1, 2025, covering various AI-driven products and services, including a downloadable computer software that is capable of the artificial production of human speech and text. The project is closely tied to xAI's Colossus 2 supercomputer initiative in Memphis, for which Musk has confirmed they will invest in millions of Nvidia GPUs. By this xAI is joining competitors like OpenAI and Meta in the race for AI computing capacity.
Macrohard adds to Musk's already extensive portfolio, which includes Tesla, xAI, X Corp, SpaceX, The Boring Company, and Neuralink. Tesla's board approved a stock award worth approximately $29 billion at the beginning of August 2025, granting the CEO 96 million restricted shares. This happened under the company's plan to incentivize Musk to remain at the company even though other extensive and wide-ranging business ventures take up more and more of his time and attention.
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