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Musk denies WSJ report that SpaceX showed AI handset prototype before IPO

The prototype is said to run on a proprietary operating system and use xAI technology as SpaceX weighs a push into wireless services.

  • The Wall Street Journal reported on Wednesday that SpaceX showed investors a prototype handset-like AI device with a "sleek design," though the company said the project remains in an early stage.
  • Elon Musk denied the reporting, calling it "utterly false," while SpaceX confirmed the project is in early development where the design could change and commercial production remains uncertain.
  • The prototype reportedly uses a proprietary operating system to integrate Starlink Mobile connectivity and xAI technology, aiming to create a vertically integrated endpoint that avoids reliance on platforms like Google's Android.
  • Industry observers cautioned that the market for dedicated AI hardware remains difficult, citing a crowded graveyard of unsuccessful launches from companies like Humane and Rabbit as a cautionary tale.
  • SpaceX has signaled interest in expanding wireless services through Starlink Mobile as a potential competitor to Verizon and AT&T; analysts speculate failed retail deals could prompt acquisition of carriers like T-Mobile.
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Forbes broke the news in United States on Wednesday, July 1, 2026.
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