A Wall Street Journal report claiming investors were shown a prototype handset was called “utterly false” by the SpaceX CEO
SpaceX reportedly developed a prototype AI-powered handset and showed it to investors and stakeholders ahead of the company’s anticipated IPO, according to a report. Elon Musk publicly rejected the claim on X, calling it “utterly false” without offering further details.
What the Prototype Reportedly Involves
Citing The Wall Street Journal, the report described a slim device thinner than Apple’s iPhone, designed to integrate AI capabilities from Musk’s company xAI. The handset was said to run on a proprietary operating system and use Qualcomm’s Snapdragon processors. The publication noted that SpaceX had told some investors the project was still in early development, with the design not finalised and no certainty it would reach the market.
Part of a Broader AI Push
If real, the device would extend SpaceX’s ambitions beyond its launch and Starlink satellite businesses. The company has reportedly invested significantly in AI infrastructure, xAI’s Grok language model, and space-based computing initiatives as Musk pushes SpaceX further into the AI sector. Neither SpaceX nor Qualcomm has commented publicly. Musk had said in January that a Starlink phone was “not out of the question,” though he indicated any such device would look quite different from current smartphones.
A Crowded, Unproven Category
The report lands amid rising interest in dedicated AI hardware. OpenAI is reportedly developing an AI device with former Apple design chief Jony Ive, while Microsoft recently unveiled a prototype AI wearable badge built on Qualcomm chips, featuring voice controls, a touchscreen, and a camera. Despite this activity, consumer AI hardware has struggled to find commercial traction — startups like Humane and Rabbit have seen weak adoption of their devices, leaving open questions about real demand for AI-first gadgets.
