Tesla CEO Elon Musk announced on Friday that he has started a new company called Macrohard. The goal of Macrohard is to compete with Microsoft’s software business by using artificial intelligence (AI).
Musk shared this news in a post on X, where he confirmed that Macrohard is a real project. He added, “It’s a tongue-in-cheek name, but the project is very real!” This shows that while the name is meant to be funny, Musk is serious about using AI to challenge big tech companies like Microsoft with his new venture.
xAI is building A Pure AI Software Company, Macrohard
Since companies like Microsoft focus solely on software without producing physical hardware, their operations could theoretically be fully replicated or automated by AI agents working together in a digital environment, like…
— Tech Dev Notes (@techdevnotes) August 22, 2025
“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.” he added
Musk’s xAI Files Patent For ‘Macrohard’ To Offer AI-Powered Software Services
Elon Musk’s company xAI has taken a big step by filing a patent for “Macrohard” at the United States Patent and Trademark Office on August 1. This means Musk is planning to build something big with the name “Macrohard.” According to media reports, the patent application lists a number of AI-based services that this new company might offer.
Some of the things mentioned in the application include downloadable software that can create human-like speech and text using AI. There’s also software for designing, coding, and even playing video games—all powered by artificial intelligence. That sounds like a really futuristic idea!
It seems like Musk wants to compete with big software companies like Microsoft, but with the help of AI. Even though the name “Macrohard” is a bit funny, the idea behind it is serious. Musk is clearly trying to push the limits of what AI can do in the tech world.
Musk vs Microsoft: AI Battle Heats Up With New xAI Plans
In a post on X last month, Elon Musk talked about how xAI’s new AI software company will work. He said it would create “hundreds of specialized coding and image/video generation/understanding agents all working together and then emulates humans interacting with the software in virtual machines until the result is excellent.” He added: “This is a macro challenge and a hard problem with stiff competition! Can you guess the name of this company?”
Musk has had a weird back-and-forth relationship with Microsoft and its CEO Satya Nadella. He dragged Microsoft into a lawsuit with OpenAI, saying OpenAI ignored its original mission and focused on making money instead. But then, in May, Musk and Nadella had a public chat when Musk’s Grok 3 models were made available on Microsoft’s Azure AI platform.
Musk recently warned Microsoft that OpenAI would “eat it alive,” but Nadella responded calmly. Meanwhile, Musk is teasing Grok 5, which he says is even better than Grok 4 and could arrive by the end of this year. Microsoft, meanwhile, still relies on OpenAI’s models for its Copilot features.
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