Elon Musk rejects AI handset report
SpaceX Chief Executive Officer Elon Musk denied reports that his aerospace company demonstrated a prototype artificial intelligence handset to investors before its recent initial public offering.
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| Credit: Heisenberg Media / Flickr |
Internal presentation details outline a handheld device (probably an AI-powered smartphone) designed to change how users interact with artificial intelligence models like xAI's Grok and others.
Musk rejected the report with a two-word post on the social media platform X on July 1.
"Utterly false,"
Musk wrote, without giving extra details.
According to project specifications published by The Wall Street Journal, the device features a slim design that makes it thinner than Apple's iPhone.
The reported device runs on a proprietary operating system and integrates artificial intelligence models from xAI, the artificial intelligence firm that SpaceX acquired earlier this year.
The hardware setup includes Qualcomm Snapdragon processors.
SpaceX told some investors during its roadshow that the project remains in an early stage of development, meaning the design could still change.
The company also specified to potential backers that there is no guarantee the hardware will ever enter mass production or reach the consumer market.
In a town hall meeting, Musk said the idea of making a phone "makes me want to die," but one of his companies would make a phone if needed.
SpaceX and Qualcomm did not respond to public requests for comment regarding the alleged project.
The news created immediate movements in the stock market for both companies.
Qualcomm shares rose approximately three percent following the publication of the report, as investors reacted to the prospect of a new chip supply partnership.
SpaceX shares dropped about 7% on Wednesday to trade between 158 and 159 dollars.
This drop extends a downward trend from the company's post-initial public offering (IPO) peak of 225.64 dollars in June.
SpaceX priced its initial public offering at 135 dollars a share, raising 75 billion dollars and securing a company valuation near 2.09 trillion dollars.
The development follows previous rejections from Musk regarding consumer hardware production.
During February, Musk dismissed a Reuters report claiming that SpaceX planned to develop a mobile phone connected directly to its Starlink satellite internet network.
At that time, Musk stated that SpaceX focused its business goals entirely on aerospace transportation and satellite communications rather than consumer electronics.
SpaceX completed a merger with xAI in February, valuing the transaction at one and a quarter trillion dollars.
The merger provided the rocket builder with direct ownership of the Grok large language model and associated data center infrastructure.
A standalone hardware product using xAI models would allow SpaceX to operate outside the application stores run by Apple and Google, avoiding standard platform transaction fees.
The company recently told investors it plans to market Starlink phone services directly to United States consumers after acquiring 17 billion dollars in wireless spectrum from EchoStar.
Other technology firms are currently funding competitive artificial intelligence hardware projects.
OpenAI recently hired former Apple vice president Paul Meade to lead hardware engineering for an upcoming artificial intelligence device scheduled for mass production in 2028.
Startups in the dedicated artificial intelligence device sector faced commercial challenges over the past year.
The Humane AI Pin ceased software operations in February 2025 after selling fewer than 10,000 units before its acquisition by HP.
The Rabbit R1 device secured 100,000 pre-orders but retained only 5,000 active users after five months of availability.
SpaceX maintains established manufacturing capabilities through its connection to Tesla and direct access to high-performance computing chips, giving the company a different operational footing than early hardware startups.
