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Elon Musk has introduced the Macrohard project, a collaboration between Tesla and xAI aimed at advancing AI capabilities for simulating company operations. The project utilizes Tesla's AI4 hardware, priced at $650 per unit, combined with xAI's Nvidia hardware.

Grok serves as the intelligent controller, facilitating real-time decision-making. In January 2026, Tesla announced a $2 billion investment in xAI to bolster this collaboration. The shift in focus from Macrohard to Digital Optimus reflects a strategic decision to enhance processing capabilities.

The project aims to revolutionize business operations through advanced automation. Musk views this initiative as a significant advancement in AI, while competition intensifies with companies like Xpeng developing rival autonomous driving technologies. Analyst sentiment on Tesla's stock varies, with some lowering price targets amid mixed investor reactions.