Source: Barrons
Author: Allen Luth
Investors should not overlook Macrohard, a name that may not sound appealing but holds tremendous potential.
$Tesla (TSLA.US)$The term 'Macrohard' is not merely a play on words mocking$Microsoft (MSFT.US)$a certain company. It represents a new business initiative by Tesla, aiming to become the Tesla equivalent of$Amazon (AMZN.US)$Amazon Web Services (AWS).
On Wednesday, Musk announced on X: 'Macrohard, also known as Digital Optimus, is a joint project between xAI and Tesla, part of Tesla’s investment agreement with xAI. It will operate based on Tesla's ultra-low-cost AI4 chip (priced at $650) and will strategically integrate more expensive xAI$NVIDIA (NVDA.US)$hardware in a cost-effective manner, thereby achieving highly competitive performance. Moreover, it will be the only truly real-time intelligent AI system. This is highly significant.'
This is significant for several reasons. First, it exemplifies another attempt to enhance productivity through AI products. Second, it demonstrates the deepening collaboration among Musk’s companies. At the end of last year, Tesla invested in his AI company xAI, and earlier this year, Musk’s aerospace company SpaceX acquired xAI.
AI has connected these three companies. xAI has its own Grok model. SpaceX aims to bring AI computing power into space orbit. Tesla, meanwhile, is striving to embed AI into physical devices such as vehicles and robots. Official announcements like Macrohard have also sparked expectations among some investors that Musk might consolidate all his businesses into a trillion-dollar mega-conglomerate.
The fact that Macrohard runs on Tesla’s AI4 chips is the third reason investors should take note. A large number of these chips are already installed in Tesla vehicles for functions such as autonomous driving. However, Tesla cars are not always in motion, and their onboard computers often remain idle. Digital Optimus can activate this idle computing power when it is not in use.
"I believe that in the future, a business similar to AWS could also develop here," Musk said in 2024, noting that Tesla vehicles are equipped with very powerful computers. "This is similar to Amazon Web Services (AWS). Amazon initially started as an online bookstore, and no one anticipated that AWS would become its most valuable business."
AWS achieved sales of $129 billion in 2025, representing a year-over-year increase of 20%; its operating profit in 2025 was close to $46 billion, accounting for nearly 60% of Amazon's total operating profit.
Dan Ives, an analyst at Wedbush, stated that Tesla's AI agent serves as 'a warning shot across the tech industry.' 'This marks a significant step forward in Tesla's AI narrative.'
Dragged down by the broader market, Tesla’s stock price fell by 3.1% on Thursday, closing at $395.01. The S&P 500 and Dow Jones Industrial Average dropped by 1.5% and 1.6%, respectively, as rising oil prices dampened market sentiment. Brent crude oil prices surged by 10%, exceeding $101 per barrel.
On Wednesday, when Musk announced Macrohard, Tesla’s stock price rose by 2.2%.
Editor/Rocky