AI Hardware
Spacex is developing an ai device prototype, report says, but musk denies it
The Wall Street Journal reports that SpaceX has prototyped a sleek AI device smaller than an iPhone, integrating xAI technology and a proprietary OS. Musk calls the report 'utterly false,' while analysts note SpaceX's manufacturing and wireless ambitions could make such a move plausible.
SpaceX, Elon Musk’s rocket-building and space exploration outfit, has reportedly shown a prototype of a handheld AI device to investors and stakeholders, according to a report from The Wall Street Journal. The device, sources say, is sleeker and slimmer than an iPhone, occupying a design space somewhere between a compact touchscreen phone and the Rabbit R1. But Musk took to social media to shoot down the report, calling it “utterly false.”
The Journal’s sources indicated the prototype is at an early development stage, and its design could still shift significantly before any potential launch. SpaceX has not commented publicly beyond Musk’s denial.
Manufacturing muscle and wireless ambitions
SpaceX, alongside sister company Tesla, has considerable manufacturing know-how and supply chain infrastructure that could, in theory, support mass production of consumer electronics. The company also has access to the semiconductor chips needed for on-device artificial intelligence computing. And with Starlink Mobile, SpaceX has signaled ambitions in wireless connectivity, a move that could pit it against established carriers such as Verizon and AT&T.
One industry analyst quoted in the Journal report speculated that SpaceX might target T-Mobile or AT&T as acquisition targets, though such a purchase would carry a multibillion-dollar price tag. The report also notes it remains unclear whether SpaceX is genuinely committed to bringing the device to market or merely exploring possibilities.
Parallels with OpenAI's hardware efforts
The timing of this development is notable. OpenAI, Musk’s former company and current rival, is also working on an AI device, in collaboration with Apple’s former chief design officer Jony Ive. OpenAI CEO Sam Altman has described the upcoming device as “more peaceful than an iPhone.” Reports from late 2024 indicate OpenAI has run into challenges refining the product, and the company recently hired Paul Meade, Apple’s former vice president in charge of the Vision Pro headset, to accelerate progress.
“If OpenAI is doing it, Musk would, perhaps, want to try to do it better.”
Like OpenAI’s project, 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. That approach would allow the device to operate independently of dominant platforms such as Google’s Android or Apple’s iOS, enabling native AI interfaces. The strategy echoes a broader industry desire to create new hardware paradigms free from platform lock-in.
A crowded graveyard of AI devices
The consumer AI device market has proven tough to crack. Companies such as Humane and Rabbit launched highly anticipated devices that failed to achieve mainstream adoption. Analysts caution that a company’s desire to sell an AI device does not equate to consumer willingness to buy one.
SpaceX could differentiate its offering by leveraging its manufacturing prowess and wireless infrastructure, but the technical and market challenges remain formidable. As the Journal puts it, “The graveyard is crowded with the unsuccessful launches of AI devices from companies like Humane and Rabbit.”
For now, the existence of any SpaceX AI device remains unconfirmed outside the Journal’s reporting, and Musk’s denial adds significant uncertainty to the story. Whether SpaceX is seriously pursuing this path or merely weighing options, the rumor underscores Musk’s broader ambition to extend his influence beyond rockets and electric vehicles into the rapidly evolving domain of AI hardware.