3 min readNew DelhiJul 2, 2026 11:32 AM IST SpaceX seems to have developed a prototype of an artificial intelligence (AI)-powered handset and demonstrated it to investors and stakeholders ahead of its anticipated initial public offering (IPO). However, CEO Elon Musk has publicly denied the claims. Responding to the report on X, Musk described it as “utterly false” without providing additional details.
The prototype features a slim design that is thinner than Apple’s iPhone and is intended to integrate AI capabilities from xAI, Musk’s artificial intelligence company, according to The Wall Street Journal. The report also suggested that the device would run on a proprietary operating system and use Qualcomm’s Snapdragon processors.
According to the publication, SpaceX informed some investors that the project remains in an early stage of development, with the design still evolving and no guarantee that the product will eventually reach the market.
The reported device would mark another step in SpaceX’s efforts to expand beyond its core launch services and Starlink satellite internet business. Reuters reported that the company has invested heavily in AI infrastructure, xAI’s Grok large language model and initiatives related to space-based computing as Musk seeks to position SpaceX more prominently in the AI sector.
SpaceX and Qualcomm have not commented publicly on the reported project. In January, Musk said that a Starlink phone was ‘not out of the question at some point’, although he suggested such a device would differ significantly from existing handsets.
The reports come amid growing interest in dedicated AI hardware. OpenAI is currently working with former Apple design chief Jony Ive on an AI-focused device, while Microsoft last month unveiled a prototype wearable badge powered by Qualcomm chips that combines AI agents, voice controls, a touchscreen, and a camera.
Despite increasing experimentation in the category, consumer-facing AI hardware has yet to prove commercially successful. Products from startups such as Humane and Rabbit have struggled to gain widespread adoption, raising questions about long-term demand for AI-first devices.Story continues below this ad
(This article has been curated by Shivani P Menon, who is an intern with The Indian Express)