Elon Musk has officially announced a new project under his AI company, xAI, called “Marcohard.” A tongue-in-cheek knock at Microsoft, the new company will aim to simulate the latter using only artificial intelligence (AI).

What Happened: Musk’s AI firm, xAI, is said to be creating an AI-only software company named “Macrohard.” Musk characterized the project as “very real”, implying that software companies like Microsoft, which do not produce physical hardware, could theoretically be entirely simulated using AI.