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.

Igor Babuschkin is leaving xAI less than three years after he co-founded the startup with Elon Musk, following a series of scandals at company.