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, sparking speculation that it could be something between a small touchscreen phone and a Rabbit R1. According to sources, SpaceX showed the device to investors and stakeholders before it went public, emphasizing that the design remains in an early stage and could still change.
Musk has denied the reporting, calling it “utterly false.”
SpaceX's Manufacturing and Wireless Ambitions
SpaceX, alongside sister company Tesla, possesses the manufacturing expertise needed for mass-producing AI devices—along with access to the chips required for on-device compute. SpaceX has also signaled a keen interest in expanding into wireless, with Starlink Mobile positioning as a potential competitor to Verizon and AT&T. One analyst even speculated that T-Mobile or AT&T could become acquisition targets for the rocket builder, though such a purchase would undoubtedly be costly.
It remains unclear whether SpaceX is merely exploring ideas or intends to fully mass-produce and market such a device. However, one thing seems clearer: if OpenAI is pursuing an AI device, Musk may want to do it better.
The Competitive Landscape: OpenAI and Others
As we know, OpenAI is collaborating 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 late 2025 indicated difficulties in refining the design. In mid-2026, OpenAI brought on another Apple executive: Paul Meade, Apple’s VP in charge of the Vision Pro headset, has joined OpenAI’s hardware team.
Like OpenAI’s device, the SpaceX prototype is reportedly designed to run on a proprietary operating system and integrate technology from xAI, Musk’s AI company which SpaceX acquired earlier in 2026. This approach would prevent the device from being locked into another company’s ecosystem, such as Google’s Android. The intent appears to be creating something new with native AI interfaces. However, the graveyard is crowded with failed AI devices from companies like Humane and Rabbit. A company wanting to sell an AI device does not yet equate to consumer demand—but that could change.
via TechCrunch AI