Elon Musk Launches New AI-Driven 'Macrohard' Company To Replicate Microsoft Services

Elon Musk, the head of Tesla and xAI, has introduced a fresh enterprise named 'Macrohard', designed to compete head-on with Microsoft's software operations through advanced artificial intelligence (AI). The name Macrohard playfully inverts Microsoft's moniker, swapping 'micro' for 'macro' and 'soft' for 'hard'. While the name is rather tongue-in-cheek, Musk emphasises that the initiative is quite serious and xAI is actively hiring for it.

In a recent announcement on the social platform X, Musk invited talent to join xAI in developing this 'purely AI software company.' He explained that since firms like Microsoft focus solely on software without producing hardware, AI could theoretically replicate their entire operations. "It's a tongue-in-cheek name, but the project is very real!" Musk stated in his post.

Join @xAI and help build a purely AI software company called Macrohard. It’s a tongue-in-cheek name, but the project is very real!

In principle, given that software companies like Microsoft do not themselves manufacture any physical hardware, it should be possible to simulate…

— Elon Musk (@elonmusk) August 22, 2025

According to reports, xAI submitted a patent application to the US Patent and Trademark Office earlier this month, on August 1, under the Macrohard banner. The filing describes various AI-powered offerings, such as programs that generate human-like speech and text artificially, along with tools for creating, programming, executing, and enjoying video games via AI.

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Musk had hinted at this concept in a prior X update last month, describing plans for an AI system that deploys numerous specialised agents for coding, image creation, video handling, and comprehension. These agents would collaborate and mimic human interactions within virtual environments to achieve top-tier results. He called it a "macro challenge" amid fierce rivalry.

This move comes amid Musk's fluctuating dynamics with Microsoft and its leader, Satya Nadella. Musk has criticized Microsoft in connection with his legal action against OpenAI, alleging the AI firm shifted toward profits over its original goals. Conversely, the two executives engaged positively in May when xAI's Grok 3 AI models became accessible on Microsoft's Azure platform.

Musk has also cautioned that 'OpenAI could eat Microsoft alive', prompting a measured reply from Nadella. While Musk promotes upcoming versions of his Grok, claiming Grok 4 outshines rivals and Grok 5 is slated for release by year's end, Microsoft continues to integrate OpenAI's technology into products like Copilot for web services, GitHub, and Windows.

Macrohard represents Musk's latest push to disrupt traditional tech giants by harnessing AI to redefine software development and delivery. It remains to be seen whether Macrohard becomes an actual threat to Microsoft or not.