SpaceX, the rocket company founded by Elon Musk, has shown investors a prototype of a handset-like AI device, according to a report from The Wall Street Journal published Monday. The device is described as sleeker and slimmer than an iPhone, placing it somewhere between a compact smartphone and a purpose-built AI gadget like the Rabbit R1. Musk quickly denied the reporting on X, calling it “utterly false.”
The Journal reports that SpaceX presented the prototype to investors and stakeholders before the news went public, emphasizing that the design is at an early enough stage that it could still change. The company told investors it has not yet committed to mass production or a commercial launch.
SpaceX, alongside sister company Tesla, possesses significant manufacturing expertise and supply chain access — including the chips needed for on-device AI compute — that could theoretically support mass production of such devices. The company has also signaled ambitions to expand into wireless connectivity through its Starlink Mobile service, which could eventually compete with carriers like Verizon and T-Mobile. One analyst cited by the Journal speculated that T-Mobile or AT&T could even become acquisition targets for the rocket builder, though such a purchase would be extraordinarily expensive.
Why Musk would enter the AI device race
The timing is notable. OpenAI, Musk’s former company and now a rival, is working with Apple’s former chief design officer Jony Ive on an AI device that CEO Sam Altman has said will be “more peaceful than an iPhone.” Reports from last autumn indicate OpenAI has struggled with the details. The company recently brought on Paul Meade, Apple’s VP in charge of the Vision Pro headset, to its hardware team.
Also read: OpenClaw, the open-source AI agent, lands on Android and iOS
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. This approach would prevent the device from being locked into another company’s platform, such as Google’s Android. The intent appears to be creating something new with native AI interfaces, rather than layering AI on top of an existing mobile OS.
The crowded graveyard of AI gadgets
Any company entering the AI hardware space faces a difficult market. The Humane AI Pin and the Rabbit R1 both launched to significant hype but failed to gain consumer traction, with reviews citing poor battery life, limited functionality, and unclear use cases. A company wanting to sell an AI device does not equate to consumers wanting to buy one — at least not yet.
It remains unclear whether SpaceX is seriously pursuing mass production and marketing of such a device, or simply exploring possibilities. What seems clearer is that if OpenAI is pursuing an AI device, Musk may want to attempt something similar — and potentially better.
Frequently Asked Questions
Did SpaceX confirm it is building an AI device?
No. Elon Musk has publicly denied the report from The Wall Street Journal, calling it ‘utterly false.’ SpaceX has not made any official announcement about an AI device.
How would SpaceX’s AI device be different from the Rabbit R1 or Humane AI Pin?
The report describes the prototype as sleeker and slimmer than an iPhone, with a proprietary operating system and native integration with xAI’s technology. This would avoid reliance on platforms like Android, but the product is reportedly in very early stages and design could still change.
What is xAI and how does it relate to SpaceX?
xAI is Elon Musk’s artificial intelligence company, which SpaceX acquired earlier this year. The reported AI device would integrate xAI’s technology, potentially giving it a unique AI-native interface and capabilities.
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