Elon Musk Pauses xAI’s ‘Macrohard’ Project to Focus on Tesla’s (TSLA) Digital Optimus

FomoAnxiety · 2026-03-11T18:03:43+00:00

xAI has paused its Macrohard project to focus on developing Digital Optimus, an AI agent for Tesla that aims to interact autonomously with software. The Macrohard team has seen significant personnel changes, and there are no current job openings for the project.

FomoAnxiety

2026-03-11 18:03:43

Abstract generation in progress

xAI, the artificial intelligence company led by Elon Musk, has reportedly paused work on its Macrohard project, according to Business Insider. For context, the project was originally designed to simulate the software development process of companies such as Microsoft MSFT -0.77% ▼ by using artificial intelligence. However, Musk has now shifted the company’s focus toward building Digital Optimus, an AI agent that will be connected to Tesla TSLA +2.55% ▲ , Musk’s EV company.

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What’s interesting about this is that instead of simply analyzing static images or screenshots, Digital Optimus is expected to operate by using a continuous stream of data and responses. In other words, the goal is for the AI agent to autonomously interact with software, generate code, and make real-time decisions. Meanwhile, signs suggest that work on Macrohard has slowed down significantly. Indeed, as of Wednesday morning, there were no job openings listed for the Macrohard team on xAI’s website.

In addition, more than 20 engineers previously assigned to the project have either left the company or moved to other departments in recent months. At the same time, xAI recently merged with Musk’s SpaceX, while Tesla announced in January that it plans to invest $2 billion into xAI. Unsurprisingly, Tesla CFO Vaibhav Taneja explained that if xAI can help accelerate Tesla’s technological progress, it makes sense for the companies to work more closely together.

What Is the Prediction for TSLA Stock?

Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 11 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $399.25 per share implies that shares are trading near fair value.

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