SpaceX reportedly showed investors AI device prototype before IPO, Elon Musk calls report false

SpaceX has an AI device prototype, and it sure sounds phone-ish

Elon Musk's SpaceX has shown investors a prototype of a "handset-like" AI device, reports The Wall Street Journal. The prototype is reportedly sleeker and slimmer than an iPhone, making us wonder if it's something between a small touchscreen phone and a Rabbit R1. SpaceX reportedly showed the device to investors and stakeholders before it went public, and told them it's at an early enough stage that the design could still change. Musk has denied the reporting, calling it "utterly false." SpaceX, alongside sister company Tesla, does have the manufacturing expertise to pull off mass producing a bunch of AI devices -- not to mention access to the chips needed to power any on-device compute. SpaceX has also signaled that it's keen to expand into wireless, with Starlink Mobile as a potential competitor to Verizon and AT&T. One analyst even went as far as to speculate that T-Mobile or AT&T would make fine acquisition targets for the rocket builder, though such a purchase would, undoubtedly, be pricey. It's also not clear if SpaceX is just throwing spaghetti at the wall or if it will attempt to really mass produce and market such a device. But one thing that seems clearer is that if OpenAI is doing it, Musk would, perhaps, want to try to do it better. As we know, OpenAI is working with Apple's former chief design officer Jony Ive on an AI device that CEO Sam Altman has claimed will be more peaceful than an iPhone. Reports from last autumn suggest the company has been struggling to get the details right, and OpenAI recently brought on another Apple executive to potentially help move things along. News dropped last week that Paul Meade, Apple's VP in charge of the Vision Pro headset, has joined OpenAI's hardware team. Like OpenAI, SpaceX's prototype is reportedly designed to run on a proprietary operating system and integrate technology from xAI, Musk's AI company that SpaceX acquired earlier this year. This would prevent these new devices from being trapped inside another company's platforms (like Google's Android). But also, the intent appears to also be to create something new, with native AI interfaces. That said, the graveyard is crowded with the unsuccessful launches of AI devices from companies like Humane and Rabbit. A company wanting to sell an AI device, does not equate consumers wanting to buy such a thing. Yet.

Elon Musk denies a report about SpaceX's AI phone prototype

Elon Musk says a report about a SpaceX AI phone prototype is "utterly false." The report, published on Wednesday by The Wall Street Journal, says SpaceX showed off a "handset-like prototype" to some investors before launching its record-breaking initial public offering in June. The device was "slimmer than an iPhone," and they were told it would run on a Qualcomm Snapdragon chip, according to the WSJ. It would also reportedly use its own AI-enabled operating system with features powered by the SpaceX-owned xAI. Last week, the Financial Times reported that SpaceX chief operating officer Gwynne Shotwell told investors that the company is considering launching a mobile service in the US that would connect to its Starlink satellite network. Meanwhile, some analysts speculate SpaceX could acquire T-Mobile. Starlink is currently SpaceX's only profitable business. Musk has brushed off the idea of creating a phone in the past, but didn't rule it out completely. During an event in Pennsylvania last year, Musk said, "the idea of making a phone makes me want to die," but added, "if we have to make a phone, we will, but we will aspire not to make a phone." In February, Musk said SpaceX is "not developing a phone" after Reuters reported that the company is working on a phone for Starlink.

Musk denies WSJ report that SpaceX showed AI handset prototype before IPO

July 1 (Reuters) - Elon Musk on Wednesday denied a Wall Street Journal report that SpaceX (SPCX.O), opens new tab showed investors and other stakeholders a prototype of an AI-focused device ahead of its blockbuster IPO. "Utterly false," Musk said in a post on X, without elaborating. The Journal had reported, citing people familiar with the matter, that the prototype handset-like device was designed to run on a proprietary operating system, contained AI technology from xAI and would ⁠use Qualcomm's (QCOM.O), opens new tab Snapdragon chips. The report added that SpaceX had told some investors the project remained in its early stages, with the design still evolving and no certainty the device would ultimately be built. SpaceX has invested billions of dollars to expand beyond its core launch and satellite internet businesses, pouring money into AI infrastructure, xAI's Grok large language model and plans for space-based computing as Musk seeks to position ⁠the company at the center of the AI race. SpaceX and Qualcomm did not immediately respond to requests for comment. Reuters reported in February that SpaceX had plans to develop a mobile device connected to its Starlink satellite ⁠internet constellation that could rival smartphones. Musk said in January that a Starlink phone was "not out of the question at some point," adding that such ⁠a device would be very different from current phones. Last month, Microsoft (MSFT.O), opens new tab unveiled a prototype AI-powered badge device for workers featuring Qualcomm wearable ⁠chips, pitching it as an always-connected assistant that uses AI agents, voice, a touchscreen and a camera to help users complete tasks. Reporting by Akash Sriram in Bengaluru; Editing by Maju Samuel Our Standards: The Thomson Reuters Trust Principles., opens new tab

SpaceX is reportedly testing a handheld AI device - Engadget

The new gadget could offer a way to access xAI's models without having to use a smartphone. SpaceX, the newly-public satellite internet company that also dabbles in rockets and CSAM-generating chatbots, might be building its own AI hardware. The Wall Street Journal reports that ahead of its initial public offering, SpaceX demoed a handheld AI device to investors that could put the company in the same rarified air as Rabbit, or some day, OpenAI. The device is slimmer than an iPhone, according to WSJ, and is powered by one of Qualcomm's Snapdragon chips. SpaceX's gadget reportedly runs on its own proprietary operating system and is integrated with services from xAI, like the startup's AI assistant Grok. Beyond that, it's not clear what SpaceX envisions the device to be for, or if it intends to actually sell it. While Grok is easily accessible through the web, the X app or the standalone Grok app, offering your AI assistant through someone else's platform comes with certain disadvantages. For example, SpaceX has to share a cut of its subscription revenue with Apple for any subscriptions it sells through the iPhone. It's also at the mercy of a given platform's app store rules. Avoiding those roadblocks is why Meta and others are trying to get their own hardware platforms off the ground rather than run their businesses on iOS or Android. SpaceX CEO Elon Musk is on the record as not being particularly enthusiastic about the idea of making a mobile device, but the stars have aligned to make it at least make it possible. In July 2025, SpaceX partnered with T-Mobile to offer access to Starlink's satellite network on smartphones. If it wanted to, it's not hard to imagine SpaceX offering something similar for an AI device of its own. Then again, it's best to take any new product connected to Musk or one of his companies with a grain of salt. While SpaceX is certainly more above board than Tesla and its promises of personal robots and self-driving cars, it's entirely possible this AI device was shown off to excite investors rather than signal some new direction for the company.

SpaceX reportedly showed investors an AI device prototype, Musk says the report is false

WSJ reports SpaceX showed investors a slim AI device prototype using xAI tech and Qualcomm chips. Musk denies it, calling the report false. SpaceX showed investors a prototype of a handset-like AI device before its record IPO, according to The Wall Street Journal. The prototype is reportedly slimmer than an iPhone, runs on a proprietary operating system, integrates technology from xAI, and uses a Qualcomm Snapdragon chipset. Elon Musk has denied the report, calling it "utterly false" on X. The WSJ says SpaceX told investors the project is early enough that the design could still change, and there is no guarantee the device will ever reach production. Qualcomm shares rose about three percent on the news regardless. SpaceX has not made any public announcement about the project. SpaceX absorbed xAI in February in a merger valued at roughly one and a quarter trillion dollars, giving the rocket company direct access to the AI models and infrastructure Musk's AI lab had built. A proprietary device running xAI's technology would keep SpaceX outside the Android and iOS ecosystems entirely, avoiding the platform fees and restrictions that come with building on someone else's software. The device would also fit into SpaceX's broader wireless ambitions. The company recently told investors it plans to sell Starlink phone service directly to US consumers, setting up a potential challenge to Verizon, AT&T, and T-Mobile. SpaceX acquired wireless spectrum from EchoStar for 17 billion dollars and has the satellite constellation to back a standalone network, so an AI device designed for that infrastructure would give SpaceX hardware, software, and connectivity under one roof. If the report is accurate, SpaceX would be entering a race that already has a well-funded frontrunner. OpenAI recently hired Paul Meade, the Apple vice president who ran Vision Pro hardware engineering, to join a team that already includes Jony Ive, Apple's former design chief. OpenAI is also developing an AI agent smartphone with Qualcomm and MediaTek targeting mass production in 2028, a device Sam Altman has described as "more peaceful" than an iPhone. The graveyard of AI hardware failures is hard to ignore. Humane's AI Pin was permanently bricked in February 2025 after the company sold fewer than 10,000 units and was acquired by HP for 116 million dollars. The Rabbit R1 attracted 100,000 pre-orders but retained only about 5,000 active users after five months, and both devices failed because they asked consumers to carry a second gadget that did less than the phone already in their pocket. SpaceX has manufacturing expertise through Tesla and access to the chips needed for on-device compute, which gives it more hardware credibility than Humane or Rabbit ever had. But Musk's flat denial creates an unusual situation: either the WSJ's sources are wrong, or SpaceX is walking back a project it pitched to investors only weeks ago. Neither explanation is particularly reassuring for anyone trying to judge whether this device will ever exist.

Elon Musk Is Reportedly Showing Off an AI Device to Investors

It was only a matter of time. Elon Musk, inveterate inventor and the erstwhile world's first trillionaire, is reportedly working on a smartphone-like device designed to facilitate communication between humans and AI. If that last sentence confused you, you're in good company: Almost nothing is known about the mysterious device, which first surfaced in a report Wednesday afternoon from The Wall Street Journal. According to the paper, the device is being built by Musk's company SpaceX and "features a sleek design that is slimmer than an iPhone." It was reportedly first displayed as a prototype to a group of SpaceX investors and other stakeholders before the company's blockbuster IPO last month. It will run on Qualcomm Snapdragon processors and technology developed by xAI (which was acquired by SpaceX in February), according to the Journal. Again, it's too early to say with any certainty what that means, but it hints at some kind of interface for chatting with Grok, the flagship chatbot developed by SpaceX's AI subsidiary that's known for its disdain for political correctness and, shall we say, rather lenient approach to safety guardrails. The vast majority of prototypes never make it to production, and this Starfleet communicator-like device may never see the light of day. Plenty of people before Musk have tried to build an AI device. Most of those efforts have either led to ignominious failure or faded into obscurity. Whatever the first truly successful AI-centered handheld device does look like, though, there's good reason to expect it won't look like your standard old smartphone. Why would people rush to buy a Musk-owned handheld AI communication device when they can already chat with ChatGPT via Voice Mode straight from their phones? Musk himself has previously made the case that the future of human-machine interaction could take place via an implant like Neuralink, obviating the need for handheld devices altogether. It's entirely possible that Musk will be the person to finally create the device that succeeds the iPhone as the all-pervasive personal device in the age of AI. Or it could've been just a shiny object to woo investors before the SpaceX stocks went up for sale. Or it might not exist at all. Shortly after the Journal's story was published, Musk posted that the news is "utterly false."

SpaceX developing AI hardware product that's 'slimmer than an iPhone,' reports WSJ

Apple isn't the only company with AI-focused products in the works. According to a new report, SpaceX has an artificial intelligence hardware prototype that's "slimmer than an iPhone" in development. For context, Elon Musk's SpaceX recently absorbed the Musk-founded AI firm behind Grok, xAI, which is now called SpaceXAI. For completion, X, formerly called Twitter, was absorbed by xAI before SpaceX absorbed xAI, and it's all under SpaceX now. The Wall Street Journal reports that SpaceX, which just became a publicly traded company is developing AI hardware and has a sleek prototype already. "The rocket and AI company showed the prototype, which features a sleek design that is slimmer than an iPhone, to some investors and other stakeholders ahead of the company's mega initial public offering, according to people familiar with the matter," according to The Wall Street Journal report. The device is said to run on a "proprietary operating system" and use a Snapdragon chip from Qualcomm. It'll use SpaceXAI technology, of course, but the report hedges that it may not come to market. Beyond that, the Journal article doesn't have much else to report for now. Meanwhile, Apple is reportedly developing multiple AI wearable devices. OpenAI, the company behind ChatGPT, has also been working on dedicated AI hardware with former Apple designer Jony Ive leading efforts.

Elon Musk's SpaceX Showed Off Prototype AI Device

Elon Musk's SpaceX may be aiming to compete with Apple in the future. The company showed investors a prototype for a "handset-like device designed to reshape how humans interact with artificial intelligence," according to The Wall Street Journal. The device is described as being slimmer than an iPhone, with a "sleek design." It runs a proprietary operating system, has a Qualcomm chipset, and integrates AI tech from SpaceX subsidiary xAI. In the past, Musk has talked about an "everything app" like China's WeChat, and the device investors were shown apparently drew on that concept. SpaceX was showing the prototype to investors and stakeholders ahead of its IPO, and said the project was in the early stages of development. The final design could change, and it is not known if it will actually come to market. Musk has talked about designing a smartphone in the past. He said he would develop one if X (formerly Twitter) was removed from the App Store by Apple. In November 2025, he said he didn't want to make a phone, but he would if Apple and Google did "really bad things" like censorship. In a town hall meeting, Musk said the idea of making a phone "makes me want to die," but one of his companies would make a phone if needed. Earlier this year, Musk said explicitly that SpaceX is not developing a phone, but The Wall Street Journal says some SpaceX and Tesla investors were told Musk "has long envisioned" a device that would be a platform for Tesla, SpaceX, and xAI technologies. Musk has denied the report, calling it "utterly false."

The Problem With SpaceX's Secret "AI Device"

Can't-miss innovations from the bleeding edge of science and tech Elon Musk, as tech critic Ed Zitron astutely noted, is a master plate-spinner: he always seems to keep the crowd dazzled with an ever-rotating spread of shiny toys. The plate currently featured front and center, SpaceX, has been wobbling after an underwhelming IPO. So Musk is giving it another hearty twirl: a flashy new AI-integrated device to keep investors on the two-trillion dollar hook. According to new reporting by the Wall Street Journal, the new device is a handset featuring a sleek design "slimmer than an iPhone," engineered to run on a proprietary SpaceX operating system. A prototype of the odd new gadget was first shown to select investors ahead of the company's initial public offering earlier in June. Per the WSJ, some of the people familiar with the handset said it will integrate "AI technology" from Musk's xAI company, using Qualcomm Snapdragon chip architecture. The only problem, obviously, is that the market is already flooded with smartphones. There are many companies already making them, and they all have access to every existing AI model, including Grok, the underwhelming flagship offering from Musk's xAI, now a part of SpaceX. If the move sounds desperate, consider that Musk has struggled to keep his hardware plates spinning recently, most notably his Optimus robot, which has faced repeated delays on its way to the assembly line. Tesla is likewise faltering on the hardware side, particularly where the company's self-driving Robotaxis are concerned. SpaceX, meanwhile, is buckling under the weight of its own IPO. Though shares of SpaceX peaked at $225, they now stand in the mid-$150s, erasing nearly all gains since the company began trading. That has had a ripsaw effect on Musk, who is now vacillating between being the world's first active trillionaire and the world's first former-trillionaire. So far, the hardware announcement hasn't given SpaceX stock any special sauce: its shares slid all afternoon after the news came out, falling nearly eight percent before the end of the day.

Elon Musk's SpaceX could be making an AI device that's slimmer than iPhone

A slim SpaceX AI device prototype has likely been shown to some investors SpaceX has reportedly shown investors a prototype of a handset-like AI device that is slimmer than an iPhone. According to The Wall Street Journal, the device is said to run on a proprietary operating system, use a Qualcomm Snapdragon chip, and integrate AI technology from xAI. The project is still at an early stage, and there is no guarantee that SpaceX will turn it into a real product. The report also does not describe it as a traditional smartphone, which is important. It could be a phone, something closer to a dedicated AI device, or a product that never makes it past the prototype stage. SpaceX has been linked to phone-like hardware before This is not the first time SpaceX has been connected to phone-like hardware. Earlier this year, a report claimed the company was exploring a Starlink-connected phone, though Musk denied that SpaceX was developing one. Musk has also spoken about the idea of making a phone in the past, largely in response to his frustration with Apple and Google's control over app distribution. He previously said he would consider making an alternative phone if X were removed from major app stores. Recommended Videos This background helps explain why the new prototype matters, even if it is still unclear what SpaceX is building. A handset-like device connected to xAI would fit with Musk's efforts to bring more of his companies' software, services, and hardware under one roof and his ambitions for an "everything app," which he expressed shortly after he purchased Twitter (now X). If it is a phone, what would it focus on? If SpaceX's prototype does become a phone-like device, AI would almost certainly be the headline feature. Musk already has xAI, Grok, X, Starlink, and his long-running "everything app" vision around payments, messaging, services, and media. A dedicated device could bring those pieces closer together without relying as heavily on iOS or Android. Privacy and platform control could also become part of the pitch. Musk has repeatedly criticized mainstream tech companies over user data and app-store power. He pushed users toward Signal during the WhatsApp privacy backlash and later accused WhatsApp of exporting user data. A SpaceX device could lean on xAI, encrypted communication, X services, and possibly Starlink connectivity. That would give it a clearer identity than many AI gadgets, but building a successful phone is still extremely difficult. Users expect polished hardware, strong cameras, reliable software, good battery life, carrier support, and a mature app ecosystem. For now, this is an early prototype, not a finished product. Only time will tell whether SpaceX is exploring a real smartphone, a narrower AI device, or something else entirely.

Report: SpaceX showed investors an AI device before IPO; Musk denies it

Report: SpaceX showed investors an AI device before IPO; Musk denies it Space Exploration Technologies Corp. showed investors and other stakeholders an early prototype of a handheld artificial intelligence device ahead of its planned initial public offering, the Wall Street Journal reported, a claim Chief Executive Elon Musk quickly rejected as "utterly false." The device is designed as a consumer product slimmer than an iPhone, with a sleek casing and a proprietary operating system built around xAI technology, according to the report, which cited people familiar with the matter. Qualcomm Inc. Snapdragon silicon would sit inside the casing. SpaceX reportedly told investors the project remains at an early stage, that the design could still change and there is no guarantee the device will ever reach the market. Musk denied the account in a post on X on Wednesday, writing, "Utterly false" without offering further detail. If accurate, the prototype would mark SpaceX's furthest push yet beyond rockets and satellite internet. SpaceX absorbed xAI, maker of the Grok large language model, in an all-stock deal early this year and has since moved to fold the AI unit fully into its own operations. A branded device would extend that in-house stack from silicon and models through to consumer hardware and fit Musk's long-stated ambition to build an "everything app" that loosens the grip Apple Inc. and Google hold over mobile. Musk raised the idea himself back in November 2022. Apple and Google had reportedly floated pulling Twitter, now X, over how it moderated content. Musk's answer at the time was that he would just build his own phone. Most read it as bluster. Turning an AI device into a viable product has proven difficult for those who have tried. The Humane AI Pin, a $700 wearable that also required a $24 monthly subscription, was switched off last year after its maker sold its assets to HP Inc. The Rabbit R1, a cheaper handheld pitched on a "Large Action Model" that could operate apps on a user's behalf, also struggled to find a market. Apple is weighing its own entries in the category, reportedly including an AI pin or pendant and camera-equipped smart glasses, while Google keeps pushing its Gemini assistant across hardware. None has landed on a form factor that convincingly replaces the smartphone. SpaceX has not commented publicly beyond Musk's post. The company went public on the Nasdaq in June in the largest initial public offering on record, raising about $75 billion at a valuation near $1.77 trillion.

Elon Musk Denies SpaceX Secretly Showed Investors a Slimmer-Than-iPhone AI Device Before Its IPO, Fueling Rampant Speculation

Even though Elon Musk has promptly denied such reports, his prompt negation seems to have only fanned the flames of speculation around a supposed consumer-facing AI device that SpaceX-owned xAI is reportedly preparing to take on OpenAI's rival gambit. While we already know that OpenAI is working on a number of consumer AI devices, SpaceX reportedly exhibited its own secretive device to a select group of investors ahead of its IPO last month, Elon Musk's speedy denial notwithstanding. SpaceX's secretive consumer AI device is reportedly powered by a Snapdragon SoC, uses a proprietary OS, and sports a sleek design Let's start with the beginning of this saga. Just a short while back, the Wall Street Journal published a tantalizing report, which described a consumer AI device that SpaceX apparently showed to a select group of investors and other stakeholders ahead of its IPO. While not much is known about this purported device, the publication asserts that it sports a sleek design, one that renders it slimmer than an iPhone, and is powered by a Snapdragon chip. It also seemingly runs on a proprietary OS that leverages xAI's technology. Soon thereafter, however, Elon Musk issued an unequivocal denial, spurring additional speculation. After all, if SpaceX is indeed working to catch up to OpenAI's consumer device-related ambitions, it would presumably want to keep such efforts a secret so as not to tip off Sam Altman, who remains Musk's awowed nemesis. As we noted recently, OpenAI has been working on a number of AI devices, including AI-powered earbuds that bear the internal codename "Sweetpea" but might retail under the "Dime" brand name, and a consumer device that is shaped like a pen and bears the internal codename "Gumdrop." Even so, the famous Apple-centric analyst, Ming-Chi Kuo, disclosed back in April that OpenAI has relegated its planned range of consumer devices to the proverbial cryo unit for now, focusing its efforts instead on an AI-powered smartphone. According to Kuo, Luxshare is likely to serve as the key assembler of OpenAI's smartphone that appears poised to challenge the dominance of the Apple iPhone, going on to note that OpenAI appears to have settled on a customized version of MediaTek's upcoming Dimensity 9600 chip as the SoC of choice for its planned smartphone. Follow Wccftech on Google to get more of our news coverage in your feeds.

SpaceX Investors Get Preview of Musk's AI Handset | PYMNTS.com

Elon Musk's rocket/artificial intelligence (AI) company had shown the prototype of this device to investors ahead of its recent initial public offering (IPO), the Wall Street Journal (WSJ) reported Wednesday (July 1), citing sources familiar with the matter. The device, said to be slimmer than an iPhone, was designed to run on a proprietary operating system and integrate AI technology from SpaceX's xAI, some of the sources said. The device is in its early stages and its design could change, the WSJ added. PYMNTS has contacted SpaceX for comment but has not yet gotten a reply. The WSJ had reported last year that Musk had considered building a smartphone out of frustration over Apple's control of the distribution of third-party apps, like his social media platform X. However, the WSJ said, it is not easy for newcomers to enter the hardware space. "The idea of making a phone makes me want to die," Musk said last October. "But if we have to make a phone, we will." But in February, the newly-minted trillionaire denied reports that the company was working on a phone that would connect directly to its Starlink satellite network. "We are not developing a phone," he posted on X. The WSJ's sources said that the device prototype SpaceX showed its investors draws on the "everything app" concept Musk pushed when he acquired X in 2022. Also known as "super apps," the WSJ added, these programs are popular in Asia, letting users do things like transfer money, order food, book trips and play games from one app. Musk has been exploring this idea with X Money, which includes accounts for everyday spending and saving, as well as the ability to "pay anyone, any way," including paying rent, sending a wire, mailing a check or paying friends, as covered here recently. Meanwhile, PYMNTS wrote last month about SpaceX's $60 billion acquisition of AI coding startup Cursor, completed soon after its IPO. That deal followed SpaceX's absorption of xAI earlier in the year. "The merger gave SpaceX the computing infrastructure but not the product," PYMNTS wrote. "Cursor supplied what xAI couldn't: a widely adopted AI coding tool with a large base of professional software engineers already paying for it."

SpaceX teases AI device post-IPO; QCOM gains, Apple unfazed By Investing.com

Investing.com -- Fresh off its historic debut on the public markets, Elon Musk's SpaceX is keeping the momentum going. The newly public aerospace and tech giant has reportedly showcased a prototype AI-interaction device to investors. The hardware, described as sleeker and thinner than an Apple iPhone, marks an ambitious consumer tech play for the company. SpaceX presented the prototype to key stakeholders and institutional investors in a series of private meetings, according to a report from the Wall Street Journal, citing people familiar with the matter. Designed to run on a proprietary operating system, the device is built to deeply integrate cutting-edge AI models from Musk's xAI division, which SpaceX absorbed earlier this year. Under the hood, the prototype leverages heavy-hitting silicon. Sources say the device is powered by a Qualcomm Snapdragon chipset, a revelation that sent immediate ripples through the chip sector. * Qualcomm (NASDAQ:QCOM) shares gained on the news, as investors rallied around the chipmaker's securing of another high-profile AI hardware partnership. * Apple (NASDAQ:AAPL) edged slightly lower as the market weighed the prospect of a futuristic new competitor crashing the premium device space, but it quickly recovered. Shares were up 1.8% at last check. Reality Check: SpaceX explicitly cautioned investors that the project is still in its infancy. Sources noted that the design remains highly fluid, and the company has not yet officially greenlit the device for commercial mass production.