SpaceX reportedly showed investors and other stakeholders an early prototype of a handset-like AI device before its initial public offering, according to The Wall Street Journal. However, Elon Musk has rejected the report, calling it “utterly false.”
The conflicting claims leave it unclear whether SpaceX is developing such a product or whether the reported prototype will ever reach consumers.
The prototype was reportedly slimmer and sleeker than an iPhone, although it was still at an early stage and its design could change.
Rather than operating as a conventional smartphone, the device was reportedly designed around AI-powered interactions. It would use a proprietary operating system, integrate technology from xAI and run on a Qualcomm Snapdragon processor.
SpaceX reportedly told investors that there was no guarantee it would complete or commercially release the device.
Musk responded to the report on X with the words “utterly false” but did not provide further details.
He did not clarify whether SpaceX had explored an AI device internally, whether it had built any prototype or which parts of the report he disputed. SpaceX and Qualcomm did not comment on the reported project.
The reported handset would fit with SpaceX’s plans to expand Starlink beyond satellite broadband.
SpaceX has reportedly told investors that it intends to launch a Starlink mobile service for US consumers, potentially placing it in direct competition with AT&T, Verizon and T-Mobile. The company has also discussed a possible mobile partnership with Charter Communications.
Some analysts have suggested that SpaceX could eventually acquire or partner with an established mobile operator to gain access to terrestrial networks. However, acquiring a major carrier such as AT&T or T-Mobile would require a substantial investment.
The reported device would use SpaceX’s own operating system rather than relying on Android or another company’s platform.
Such an approach could give SpaceX and xAI greater control over the device’s software, AI features and Starlink integration. It would also reduce their dependence on Apple and Google for app distribution and access to mobile users.
SpaceX merged with xAI earlier this year and has invested in infrastructure supporting the company’s Grok AI models and other computing projects.
The report comes as OpenAI develops its own AI hardware with former Apple design chief Jony Ive.
OpenAI formally merged with Ive’s hardware startup, io, in 2025. CEO Sam Altman has described its planned device as a calmer and more peaceful alternative to the smartphone experience.
OpenAI has also recruited Paul Meade, an Apple vice president who worked on the Vision Pro headset, to join its hardware team.
It remains unclear whether SpaceX intends to manufacture the reported device at scale or whether consumers want another dedicated AI gadget.
Previous products in the category have struggled. Humane discontinued its AI Pin less than a year after launch, while the Rabbit R1 arrived without several of the capabilities initially demonstrated by its developer.
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