Musk: "Microhard" Macrohard for xAI and Tesla joint project, able to simulate entire company operations

March 11: Musk Notes Macrohard/Digital Optimus Is xAI-Tesla Joint Project Under Investment Agreement Grok— the primary controller/navigator with deep world understanding— commands Digital Optimus. The latter processes and executes real-time computer screen video plus keyboard/mouse operations from the past 5 seconds; Musk frames it as advanced, sophisticated navigation software. Analogy: Digital Optimus acts as System 1 (the brain’s instinctual function), while Grok serves as System 2 (the thinking function). It runs on Tesla’s ultra-low-cost AI4 ($650) and parsimoniously leverages xAI’s higher-priced Nvidia hardware. Critically, it’s the only real-time intelligent AI system— a key distinction. In principle, Digital Optimus AI can simulate an entire company’s operations. That’s why the project is named Macrohard, a playful jab at Microsoft. No other firm currently can do this, Musk emphasized.