Elon Musk has announced a joint project with xAI, called “Digital Optimus” or “Macrohard,” which will use xAI’s Grok large language model to power a computer-controlling AI agent. The project is part of Tesla’s $2 billion investment agreement with xAI.
Musk described the system as a master-conductor navigator with deep understanding of the world, paired with a Tesla-built AI that handles fast, instinctive reactions and real-time screen video and keyboard/mouse actions. He called it “the only real-time smart AI system” capable of emulating entire companies.
However, this announcement contradicts Musk’s previous statements, including his claim that Tesla had “no need to license anything from xAI.” The joint project raises questions about why all this could not be built within Tesla and whether Musk diverted Tesla’s AI talent and resources to xAI for personal benefit.
Source: https://electrek.co/2026/03/11/musk-confirms-xai-tesla-joint-digital-optimus-project-shareholder-lawsuit