Elon Musk says xAI is building a project that could eventually emulate entire companies whose output exists purely in digital form.
Speaking at xAI’s all-hands meeting, Musk says the firm is working on an internal effort known as “Macrohard,” calling it potentially the company’s most important long-term initiative.
He says the idea centers on reproducing the full operations, from coding to management, of firms that do not manufacture physical products.
“The Macrohard project, over time, actually, will probably be our most important project, because what we’re talking about is the emulation of entire human companies. So when you look at the most valuable companies in the world, their output is digital. So they don’t actually make hardware. So it should be possible to completely emulate any company where the output is digital.”
Musk says that such a capability would dramatically expand economic output.
“And this will usher in an age of prosperity, the likes of which we can barely imagine at this point. You need to imagine to imagine it. So this is a big deal, and this is why the words ‘Macrohard’ are painted on the roof of the training cluster because that’s what it’s going to build.”
He has previously outlined the concept publicly. In an August 22nd, 2025, post on X, Musk said:
“In principle, given that software companies like Microsoft do not themselves manufacture any physical hardware, it should be possible to simulate them entirely with AI.”
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