Elon Musk's next big bet? SpaceX may have a prototype for phone-like AI device
It is suggested that the prototype may be Elon Musk's long-standing vision of an "everything app," that combines several experiences.
- Jul 2, 2026,
- Updated Jul 2, 2026 11:47 AM IST
Elon Musk’s SpaceX is reportedly working on an artificial intelligence (AI) gadget, and it already has a prototype. It is said that the tech giant may have been aiming to compete with Apple in the near future.
According to The Wall Street Journal report, SpaceX has showcased investors and other stakeholders with a prototype of a handset-like AI device. While it is suggested that the device could be a phone, it appears to be thinner and sleeker than the iPhone. It also says that the device is somewhere between a traditional touchscreen smartphone and an AI-first gadget like the Rabbit R1.
Must read: Elon Musk turns 55: The 55 biggest milestones that changed tech, space, and AI
However, SpaceX highlights that the device is still in an early stage of development. It further suggests that the device runs on a different operating system than Android or iOS. It may be powered by a Qualcomm processor and AI technology from xAI. Therefore, AI might be the core part of the user experience.
The report also mentions that the prototype may be Elon Musk's long-standing vision of an "everything app" that combines several experiences such as messaging, payments, shopping, ride-hailing, social media, and others.
Must read: Elon Musk wealth declines: Trillionaire tag lost despite SpaceX shares rebound- Here's how
However, Elon Musk reacted to claims, saying, “utterly false.” However, Musk has the ability to bring a new device to the market as it has manufacturing expertise and it also has access to powerful computer chips. The company has also expressed its plans to expand the wireless telecommunications market through Starlink's mobile services. However, the idea of building an entirely new device could be expensive.
If the claims are true, SpaceX may not be the only one developing an AI device; Sam Altman’s OpenAI is also reported to be working on an AI device with Apple’s former chief design officer, Jony Ive. In addition, the company is also reported to have hired another Apple executive to help speed up the plans.
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Elon Musk’s SpaceX is reportedly working on an artificial intelligence (AI) gadget, and it already has a prototype. It is said that the tech giant may have been aiming to compete with Apple in the near future.
According to The Wall Street Journal report, SpaceX has showcased investors and other stakeholders with a prototype of a handset-like AI device. While it is suggested that the device could be a phone, it appears to be thinner and sleeker than the iPhone. It also says that the device is somewhere between a traditional touchscreen smartphone and an AI-first gadget like the Rabbit R1.
Must read: Elon Musk turns 55: The 55 biggest milestones that changed tech, space, and AI
However, SpaceX highlights that the device is still in an early stage of development. It further suggests that the device runs on a different operating system than Android or iOS. It may be powered by a Qualcomm processor and AI technology from xAI. Therefore, AI might be the core part of the user experience.
The report also mentions that the prototype may be Elon Musk's long-standing vision of an "everything app" that combines several experiences such as messaging, payments, shopping, ride-hailing, social media, and others.
Must read: Elon Musk wealth declines: Trillionaire tag lost despite SpaceX shares rebound- Here's how
However, Elon Musk reacted to claims, saying, “utterly false.” However, Musk has the ability to bring a new device to the market as it has manufacturing expertise and it also has access to powerful computer chips. The company has also expressed its plans to expand the wireless telecommunications market through Starlink's mobile services. However, the idea of building an entirely new device could be expensive.
If the claims are true, SpaceX may not be the only one developing an AI device; Sam Altman’s OpenAI is also reported to be working on an AI device with Apple’s former chief design officer, Jony Ive. In addition, the company is also reported to have hired another Apple executive to help speed up the plans.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine