SpaceX Develops AI Device Prototype That Looks Like a Phone
SpaceX has shown investors a prototype of a handset-like AI device, slimmer than an iPhone, though Elon Musk denies the reports. The device may run on a proprietary OS and integrate xAI technology.

According to a report by The Wall Street Journal, SpaceX has demonstrated a prototype of an AI device to investors that resembles a hybrid between a small touchscreen phone and a Rabbit R1. The device is reportedly sleeker and slimmer than an iPhone, but it is in such an early stage that the design could still change. Company owner Elon Musk has called the reporting “utterly false.”
SpaceX, along with sister company Tesla, has the manufacturing expertise to mass-produce such devices, as well as access to the chips needed for on-device computing. Additionally, SpaceX has signaled its ambition to expand into wireless communications, with Starlink Mobile potentially competing with Verizon and AT&T. One analyst even speculated that T-Mobile or AT&T would be fine acquisition targets, though such a purchase would undoubtedly be expensive.
Interestingly, OpenAI, led by Sam Altman, is also working on an AI device with former Apple design chief Jony Ive. Altman has claimed the device will be more peaceful than an iPhone. OpenAI recently hired another Apple executive to help accelerate development. 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 would prevent the device from being locked into other companies’ platforms, such as Google’s Android.
The market has already seen several failed AI device launches, including those from Humane and Rabbit. A company wanting to sell an AI device does not equate to consumers wanting to buy one – at least not yet.


