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Elon Musk to Take on Microsoft With 'Macrohard'

The goal is to create hundreds of specialized coding and generative AI agents. 'It should be possible to simulate [Microsoft] entirely with AI,' Musk says.

 & Michael Kan Principal Reporter

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Elon Musk is creating a direct rival to Microsoft through a new company called “Macrohard.”

“It’s a tongue-in-cheek name, but the project is very real!” Musk tweeted on Friday. 

The CEO of SpaceX and Tesla plans to take on Microsoft by harnessing AI. Musk describes Macrohard as a “purely AI software company” that’ll be tied to his other startup, xAI. 

“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,” he added.

Musk made the announcement weeks after xAI registered the Macrohard trademark with the US Patent Office. Last month, he also said he was creating a “multi-agent AI software company” that would use xAI's Grok chatbot. (In 2021, he also tweeted: “Macrohard >> Microsoft.”)

The goal is to spawn “hundreds of specialized coding and image/video generation /understanding agents all working together,” he wrote. The same AI agents can then emulate human users “interacting with the software in virtual machines until the result is excellent.”

"This is a macro challenge and a hard problem with stiff competition! Can you guess the name of this company?” he wrote at the time. 

So, it sounds like Musk is betting AI can replicate and pump out high-quality software, rivaling the Office programs from Microsoft, a company that's betting heavily on generative AI. Last year, Musk also mentioned his plans to use artificial intelligence to create video games. 

To develop Macrohard, Musk seems to be leveraging the growing Colossus supercomputer at xAI’s Memphis facility. According to Musk, xAI will buy millions of Nvidia enterprise-grade GPUs as rival companies, including OpenAI and Meta, do the same in their pursuit of cutting-edge AI. 

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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