Elon Musk has launched a new artificial intelligence (AI) venture under his xAI initiative, taking on the mighty Microsoft. The project, Macrohard, was announced by Musk on X (formerly Twitter) on August 22.

What Happened: Musk’s AI firm, xAI, is said to be creating an AI-only software company named “Macrohard.” Musk characterized the project as “very real”, implying that software companies like Microsoft, which do not produce physical hardware, could theoretically be entirely simulated using AI.