- Grok would guide Digital Optimus as it processes recent computer activity.
- Musk said the system is designed to work similarly to how the human brain processes information.
- The AI system is primarily designed to run on Tesla’s AI4 hardware, which Musk said costs about $650.
Elon Musk, chief executive officer of EV giant Tesla Inc. (TSLA) and xAI, announced on Wednesday that both companies have teamed up to develop a new AI initiative called Macrohard, also referred to as Digital Optimus.
In a post on the X platform, Musk said the project is part of Tesla’s investment agreement with xAI and aims to create a highly responsive, real-time AI system that can interpret and act on digital inputs almost instantly.
The System Relies On Grok
At the heart of the project is Grok, an AI described as the director of Digital Optimus.
“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions.”
-Elon Musk
xAI’s conversational and reasoning model would guide Digital Optimus as it processes recent computer activity, including screen visuals and keyboard or mouse inputs, to make immediate decisions.
How The AI System Works
Musk explained that the architecture mirrors the way the human mind processes information. Digital Optimus represents “System 1,” which performs rapid and instinctive actions, while Grok serves as “System 2,” handling deeper reasoning and strategic thinking. Working together, the two components enable the platform to monitor real-time computer activity and take appropriate action almost instantly.
The AI platform is designed to run primarily on Tesla’s AI4 hardware, which Musk said costs roughly $650. He suggested the technology could eventually replicate complex operational workflows typically handled by human teams.
On March 4, Musk said Tesla plans to be one of the companies leading the development of artificial general intelligence (AGI). Tesla plans to spend more than $20 billion in 2026, much higher than the $8.5 billion it spent in 2025. The increased investment will help boost production of the Cybercab, Tesla Semi, and the Optimus robot, with its Fremont factory preparing to manufacture Optimus units.
TSLA stock has gained over 76% in the last 12 months.
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