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The opinions expressed are his own. 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At the time of writing, Taiwan Semiconductor Manufacturing (TSM.US) led the downturn with a drop of over 4%. 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Nasdaq down 1.4%; S&P 500 down 1.1%; Dow down 1.3%.Big tech stocks fell in Thursday trading. 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The Trump administration on Thursday sued the state of California, claiming the state's zero-emission vehicle and tailpipe greenhouse gas emissions rules are illegal and preempted by federal law.The U.S. Transportation Department sued the California Air Resources Board in the U.S. District Court over vehicle rules that remain in place even after President Donald Trump signed legislation last year to overturn California’s Advanced Clean Cars II waiver to phase out gasoline-powered cars by 2035, but its prior rules remain in effect.  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It's a new business for Tesla, trying to become what Amazon Web Services is to Amazon.com.On Wednesday, Musk made the announcement. \"Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla's investment agreement with xAI,\" he wrote on X. \"This will run very competitively on the super low cost Tesla AI4  paired with relatively frugal use of the much more expensive xAI Nvidia hardware. And it will be the only real-time smart AI system. This is a big deal.\". It's a big deal for a few reasons. For starters, it's another example of AI products trying to improve productivity. It's also a sign that Musk's companies are moving closer together. Tesla invested in its AI company, xAI, late last year, and Musk's rocket company, SpaceX, acquired xAI earlier this year.AI unifies the three companies. xAI has its Grok models. SpaceX hopes to put AI computing in orbit. 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