March 11 (Reuters) – Elon Musk on Wednesday unveiled a joint project between Tesla (TSLA) and his artificial intelligence startup xAI, which ‌he called “Macrohard” or “Digital Optimus” and said that it was a ‌system capable of emulating the functions of software companies.

In a post on his social ​media platform X, Musk said the project pairs xAI’s Grok large language model, acting as a high-level “navigator,” with a Tesla-developed AI agent that processes real-time computer screen video and keyboard and mouse actions.

The launch of ‌Anthropic’s (ANTH.PVT) Claude Cowork, which ⁠can perform a range of computer-based tasks autonomously, has already spooked software investors who fear that agentic AI ⁠can disrupt established business models.

Musk’s xAI was previously building Macrohard as an AI project that would allow developers to simulate software creations by companies ​like Microsoft.

“In ​principle, it is capable of ​emulating the function of entire ‌companies. That is why the program is called MACROHARD, a funny reference to Microsoft,” Musk said on Wednesday.

Musk said the system would run on Tesla’s in-house AI4 chip paired with xAI’s Nvidia-based server hardware, describing the combination as cost-competitive.

The announcement comes after Tesla entered into an ‌agreement in January to invest about $2 ​billion to acquire shares in xAI.

SpaceX acquired ​xAI last month in an ​all-stock deal that valued the rocket maker at $1 ‌trillion and xAI at $250 billion, coming ​ahead of a ​potential blockbuster initial public offering for SpaceX later this year, with Musk citing orbital data centers as a main reason for ​the merger.

Records from the ‌U.S. Patent and Trademark Office show that xAI filed a ​trademark application for “Macrohard” in August 2025.

(Reporting by Akash Sriram ​in Bengaluru; Editing by Shinjini Ganguli)