Musk denies SpaceX AI handset prototype report despite Wall Street Journal claims

Elon Musk has called a Wall Street Journal report "utterly false" after it claimed SpaceX showed investors a handset-like AI device ahead of its IPO.

SpaceX reportedly showed investors a prototype of a handset-like AI device before its IPO. Musk has since called the report "utterly false."

Elon Musk has vehemently denied reports suggesting SpaceX is developing a physical AI device, calling the claims "Utterly False." The Wall Street Journal had reported on an early prototype of a slim handheld AI device, powered by xAI technology, intended to bypass app store restrictions. Musk has previously expressed strong reservations about entering the phone manufacturing market, reiterating his stance against such ventures.

According to the Wall Street Journal, SpaceX showed investors an early prototype of a slim, "handset-like" AI device running a proprietary operating system and integrating xAI technology. Elon Musk, however, denied the report, calling it "utterly false." TechCrunch reports: 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. [...] 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 the intent also appears to 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 to consumers wanting to buy such a thing. Yet. Read more of this story at Slashdot.

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."Tag: Elon MuskThis article, "Elon Musk's SpaceX Showed Off Prototype AI Device" first appeared on MacRumors.comDiscuss this article in our forums