The Git project is working on improving its handling of large files, which can cause problems with storage and cloning. Git LFS, a current solution, has its own set of issues, including vendor lock-in and additional costs. The Git project has introduced partial clones and is working on large object promisors, which aim to provide a more native and efficient solution for handling large files. This new approach is still in development, but it promises to simplify the process of working with large files in Git.