Tesla and SpaceX CEO Elon Musk said Wednesday that Tesla and xAI, which is part of SpaceX, would work on a joint AI agent project called “Macrohard,” also referred to as “Digital Optimus,” as part of Tesla’s $2 billion investment in xAI. The collaboration would pair Grok with what Musk described as a real-time computer-controlling AI agent running on Tesla hardware.

In his post, Musk said Grok would serve as the higher-level “System 2” reasoning layer, directing “Digital Optimus,” a faster “System 1” system that processes the last five seconds of screen video and keyboard and mouse inputs to take action. He claimed the system would run inexpensively on Tesla’s low-cost AI4 chip alongside more expensive Nvidia chips at xAI, and suggested it could, “in principle,” emulate the function of entire companies. “No other company can yet do this,” he said.

Business Insider reported earlier Wednesday that Tesla was taking up the AI agent mantle as xAI’s similar project stalled, but Musk’s post suggests the initiatives are more intertwined than previously understood.

The collaboration marks the latest example of Musk’s companies working closely together, further blurring the lines between Tesla and the recently merged SpaceX–xAI entity.

“Pokémon Pokopia,” a Switch 2 exclusive game in the vein of “Animal Crossing,” has become something of a sleeper mass hit for Nintendo, sending the gaming giant’s shares climbing. The stock closed up more than 8% in Japan on Wednesday. US ADRs are up 5% in premarket trading.

Physical editions of “Pokopia” are currently out of stock on Walmart’s website, and earlier this week Amazon temporarily hiked the price of the game to $80 as demand surged.

“Pokopia” falls into a category of cozy games that have become a major industry category. “Animal Crossing” is the second-most-popular title on the original Switch and has sold more than 49 million copies. The 10-year-old “Stardew Valley” has sold more than 50 million copies across consoles and PC.

The Switch 2 is seeing a momentum boost from the “Pokémon” exclusive, Jefferies analyst Atul Goyal wrote in a recent note. That’s helping to offset investor fears around the growing issue of memory prices.

Nebius is soaring in premarket trading after deepening its partnership with the world’s most valuable company.

Nvidia will invest $2 billion in the neocloud to help “develop and deploy the next generation of hyperscale cloud for the AI market, from AI natives to enterprises,” according to the press release. “To enable Nebius to deploy more than 5 gigawatts of capacity by end of 2030, NVIDIA will support Nebius’s early adoption of the latest generation of NVIDIA’s accelerated computing platform.”

The chip designer already held roughly $100 million in Nebius stock as of the end of 2025, per a filing.

Nvidia has actively sought out $2 billion equity stakes via partnerships with smaller publicly traded AI plays as of late. Earlier this month, Nvidia said it would take $2 billion positions in advanced optics firms Lumentum and Coherent. In late January, the chip designer announced an investment of the same amount in CoreWeave, the neocloud whose IPO it also anchored.

Oracle had gained nearly 12% in early trading on Wednesday after the company's quarterly results and outlook gave investors reason to cheer.

The hyperscaler reported:

• Sales of $17.2 billion (estimate: $16.9 billion).

• Adjusted earnings per share of $1.79 (estimate: $1.70).

• RPO (remaining performance obligations, or backlog) of $553 billion (estimate: $537.8 billion).

Oracle’s closely watched capex for the quarter was $18.64 billion, above analyst estimates of $14 billion.

Management also raised its sales outlook for the next fiscal year to $90 billion; analysts had expected $86.7 billion.

One year ago, management suggested that its fiscal 2027 top-line growth rate would be around 20%. And last quarter, the company said that 2027 sales would be $4 billion higher than previously expected. Putting this all together, this means Oracle’s previous 2027 sales guidance was in the neighborhood of $84.4 billion ahead of this report.

Breaking down Oracle’s cloud business:

• Cloud revenue was $8.9 billion, up 44% year on year.

• Cloud infrastructure revenue was $4.9 billion, up 84% year on year.

• Cloud application revenue was $4 billion, up 13% year on year.

All of those figures were marginally ahead of estimates.

The cloud company’s elevated indebtedness and expected cash burn compare unfavorably to other hyperscalers, which caused markets to treat its aggressive capex plans as more risky than those of its peers. That’s been exacerbated by OpenAI, itself a cash incinerator, being the source of much of Oracle’s pipeline of future business.

Oracle’s five-year credit default swap spreads widened significantly from mid-September through late January due to this counterparty and credit risk. The company’s perceived creditworthiness recovered after announcing plans to raise money through equity, not just debt, to find its expansion plans, before CDS spreads once again blew out to their widest level since 2009.

“Oracle has been stained by the negative sentiment around OpenAI and is generally viewed as a poster child for AI Capex excess / madness and so a super squeezy rally in the stock could tell us AI Capex fears have peaked for now,” Brent Donnelly, president of Spectra Markets, wrote ahead of this release.

Oracle shares took a beating recently, as a number of analysts have lowered their price targets for the stock, which is down about 56% from its 52-week high of $345.72.