SpaceX Reportedly Showed Investors a Sleeker-Than-iPhone AI Device Prototype

SpaceX has shown investors a prototype of a handset-like AI device, according to a report by The Wall Street Journal cited by TechCrunch. The revelation signals SpaceX's potential expansion into the increasingly crowded AI hardware space.

The prototype is reportedly sleeker and slimmer than an iPhone, occupying a design space somewhere between a small touchscreen phone and the Rabbit R1. Sources indicate the device is at an early enough stage that its design could still change. Elon Musk denied the reporting, calling it utterly false.

SpaceX and its sister company Tesla possess the manufacturing expertise to mass-produce AI devices at scale, along with access to the chips needed for on-device compute. SpaceX has also signaled ambitions in wireless through Starlink Mobile, with one analyst even suggesting T-Mobile or AT&T could be acquisition targets for the rocket builder.

If realized, the device would run on a proprietary operating system and integrate technology from xAI, Musk's AI company that SpaceX acquired earlier this year. This approach would prevent the device from being trapped inside another company's platform ecosystem while creating native AI interfaces.

The move parallels OpenAI's AI device project with former Apple chief design officer Jony Ive. OpenAI recently brought on Paul Meade, Apple's former VP in charge of the Vision Pro headset, to its hardware team. Sam Altman has claimed OpenAI's device will be more peaceful than an iPhone.

However, the market track record for standalone AI devices is poor. Humane and Rabbit both launched AI devices that failed to gain consumer traction, filling what one might call a graveyard of unsuccessful AI hardware launches. A company wanting to sell an AI device does not equate to consumers wanting to buy one.

It remains unclear whether SpaceX will pursue mass production and marketing for the device. But one pattern emerging is clear: if OpenAI is pursuing AI hardware, Musk appears determined to build something better.