'Utterly false': Elon Musk rejects report claiming SpaceX showed AI gadget to investors

Elon Musk dismisses report of SpaceX AI gadget as company’s hardware ambitions come under spotlight

Elon Musk has rejected claims that SpaceX has been quietly developing a dedicated artificial intelligence device after reports suggested the aerospace company had already shown an early prototype to investors.

The report, published by The Wall Street Journal, alleged that SpaceX had presented a concept for a compact AI-powered handheld product during meetings with investors and stakeholders before the company went public. According to the publication, the prototype remains at an early stage, with its design still subject to significant changes.

Musk, however, swiftly pushed back against the report, describing it as "utterly false", without offering further details.

The conflicting accounts have nevertheless fuelled speculation over whether Musk's business empire could eventually expand into consumer AI hardware, particularly at a time when several technology companies are racing to define what comes after the smartphone.

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Could SpaceX enter the AI hardware race?

According to the report, the proposed device is said to be slimmer and more streamlined than Apple's iPhone, although its final form has not been settled. The description has prompted comparisons with a range of AI-first products already on the market, from compact touchscreen devices to dedicated AI assistants.

If such a project were to materialise, SpaceX would not be starting from scratch. Alongside Tesla, the company has built extensive manufacturing capabilities that could support large-scale hardware production. Musk's broader ecosystem also includes xAI, whose models could potentially power AI features directly on the device.

The report further claimed that the hardware would rely on a proprietary operating system rather than Android, allowing tighter integration with xAI's software while reducing dependence on technology platforms controlled by rivals such as Google.

SpaceX's communications business could also play a role if the company decides to pursue connected consumer devices. Through Starlink, the company has already expanded beyond satellite launches into broadband services, while Starlink Mobile has demonstrated ambitions in the wireless connectivity space.

Some industry observers have even speculated that SpaceX could strengthen its telecommunications presence through acquisitions, although suggestions involving established mobile operators such as T-Mobile or AT&T remain purely speculative and would require enormous financial commitments.

At this stage, however, there is no indication that SpaceX intends to commercialise such a product, and Musk's denial has cast further doubt on the report.

Upcoming AI device market

The renewed attention arrives as several technology companies continue exploring alternatives to the traditional smartphone.

Among the most closely watched efforts is OpenAI's hardware programme, which is being developed with former Apple chief design officer Jony Ive. OpenAI chief executive Sam Altman has previously suggested the project aims to deliver a computing experience that feels less intrusive than today's smartphones.

Progress has not been entirely straightforward. Reports over recent months have indicated that OpenAI has faced challenges refining the product, leading the company to strengthen its hardware leadership. Last week, it emerged that Paul Meade, Apple's vice-president responsible for the Vision Pro headset, had joined OpenAI's hardware division, adding another experienced executive to the project.

Like the reported SpaceX concept, OpenAI's ambitions reflect a wider industry belief that AI may eventually require entirely new categories of consumer devices instead of existing smartphone designs.

Whether consumers share that vision remains uncertain.

Several high-profile AI hardware launches have struggled to gain traction despite significant attention. Devices introduced by companies including Humane and Rabbit failed to generate sustained consumer demand, highlighting the difficulty of convincing buyers that standalone AI gadgets offer enough value over smartphones.

For now, there is no confirmation that SpaceX is developing such a product. But even with Musk's emphatic denial, speculation surrounding AI-first hardware is unlikely to disappear as the technology industry's biggest players continue searching for the next major computing platform beyond the smartphone.