While the concept of a dedicated AI device that deviates from the traditional smartphone form factor is unconventional, it is not unprecedented. According to a Wednesday report from The Wall Street Journal, SpaceX has presented an early prototype of such a device to its investors.
The report indicates that Elon Musk’s SpaceX—an ecosystem that includes the social media platform X and the AI startup xAI—has developed a slim, sleek handset-like device. This hardware reportedly runs on a proprietary operating system designed to integrate xAI’s specialized technologies and is powered by a Qualcomm Snapdragon chip, a standard component in many contemporary Android devices.
On Thursday, Musk addressed the reports on X, dismissing the claims as “utterly false.”
This denial follows previous statements from Musk; in February, he publicly maintained that no phone was under development. During an event last October, Musk expressed strong reluctance toward hardware development, stating, “the idea of making a phone makes me want to die,” though he added, “if we have to make a phone, we will.” Despite these denials, persistent rumors suggest the hardware may indeed be in development, regardless of its official classification.
Following SpaceX’s transition to being publicly traded earlier this month, the emergence of branded hardware would not be unexpected. SpaceX did not immediately respond to requests for comment.
Redefining the Mobile Experience
As artificial intelligence becomes increasingly integrated into existing smartphones, tech giants are racing to engineer entirely new AI-centric hardware. For instance, OpenAI and designer Jony Ive are reportedly collaborating on a screenless AI device designed to function as an always-on assistant, potentially worn as an earbud.
In an industry dominated by existing technologies, launching a device with a unique operating system could allow Musk to bypass the ecosystem restrictions imposed by Apple and Google. Such a move would enable SpaceX and xAI to leverage their own proprietary tech stacks rather than relying on third-party platforms.
Furthermore, breaking away from the traditional smartphone format would allow SpaceX to circumvent the stringent app store regulations maintained by the industry’s primary players.
When presented to institutional investors, SpaceX reportedly characterized the device as being in the early stages of development, noting that the design remains subject to change. While the company avoids the “phone” label, it is highly probable that the device would utilize SpaceX’s Starlink satellite network for global connectivity.
Even if a dedicated physical handset is not the final product, a branded consumer mobile service remains a strong possibility. Last week, The Financial Times reported that SpaceX is considering a Starlink-branded retail mobile plan, which would position the company as a direct competitor to major carriers like T-Mobile, AT&T, and Verizon.
