Elon Musk is once again making headlines in the artificial intelligence world, this time with a bold attempt to challenge Microsoft. His AI company, xAI, has announced that it is building a new spinoff called Macrohard—a software company envisioned to be powered entirely by artificial intelligence.

The project takes a deliberate jab at Microsoft, with its name replacing “Micro” with “Macro” and “soft” with “hard.” Musk believes that software companies like Microsoft, which do not manufacture physical hardware, can be replicated and even run solely by AI agents.

Hiring Drive for Macrohard

xAI co-founder Yuhuai Wu recently revealed on X that the company is actively hiring for “new team building computer control agents.” According to Wu, the team’s primary responsibilities will include development work not only for Macrohard but also for Grok 5, the next generation of xAI’s large language model. He hinted that both projects are targeted for completion by the end of 2025, with job postings to be released soon.

Wu’s announcement was reposted by xAI engineer Arshdeep Singh before Elon Musk amplified the message himself. The Tesla CEO added his own call to action: “Help build Macrohard, the AI software company!”

Musk, who regularly shares updates about xAI’s hiring and expansion, is keen to attract top global talent to bring his AI vision to life. This recruitment push follows his recent statement that Grok 5 will begin training in the coming weeks, with a full launch expected before the end of this year.

What is Macrohard?

Macrohard is positioned as a software-only enterprise, powered entirely by AI agents working collaboratively to maximize productivity and efficiency. The concept reflects Musk’s growing conviction that artificial intelligence can automate not just tasks but entire organizations. While details of the company’s exact product roadmap remain under wraps, the ambition is clear: to compete directly with Microsoft in areas like software services and enterprise tools.

Musk insists that this is achievable because companies like Microsoft derive their revenue largely from software such as Windows and the Office suite. He argues that AI-driven systems can match or even surpass this output without the need for human-driven software development cycles.

A Tough Battle Ahead

Challenging Microsoft, however, will be no easy feat. The Redmond giant continues to dominate the global software market, with hundreds of billions in revenue generated from Windows, Office, and cloud services. On top of that, Microsoft has strengthened its partnership with OpenAI and has expanded its in-house AI research to stay ahead in the AI race. Recently, the company has also broadened access to its AI-powered Copilot for Office 365 users, further embedding AI into its products.

Despite these hurdles, Musk’s xAI is betting on Macrohard’s potential to shake up the industry. With Grok 4 already recognized as one of the top-performing language models and Grok 5 on the horizon, Musk appears determined to carve out a unique space for his AI ecosystem.

The coming months will reveal whether Macrohard can transition from a provocative name to a genuine force capable of rivaling Microsoft’s long-standing dominance in the software world.