SpaceX has an AI device prototype, and it sure sounds phone-ish

Published 1 July 2026 · tech

Elon Musk’s SpaceX has shown investors a prototype of a “handset-like” AI device, reports The Wall Street Journal. The prototype is reportedly sleeker and slimmer

Elon Musk’s SpaceX has shown investors a prototype of a “handset-like” AI device, reports The Wall Street Journal. The prototype is reportedly sleeker and slimmer than an iPhone, making us wonder if it’s something between a small touchscreen phone and a Rabbit R1. SpaceX reportedly showed the device to investors and stakeholders before it went public, and told them it’s at an early enough stage that the design could still change. Musk has denied the reporting, calling it “utterly false.” 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.

As we know, OpenAI is working with Apple’s former chief design officer Jony Ive on an AI device that CEO Sam Altman has claimed will be more peaceful than an iPhone. Reports from last autumn suggest the company has been struggling to get the details right, and OpenAI recently brought on another Apple executive to potentially help move things along. News dropped last week that Paul Meade, Apple’s VP in charge of the Vision Pro headset, has joined OpenAI’s hardware team. 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 also, the intent appears to also 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 consumers wanting to buy such a thing. Yet.