SpaceX showing investors AI device prototype, Musk denies report

What happened

SpaceX showed investors a prototype of a handset-like AI device that is reportedly sleeker and slimmer than an iPhone, according to The Wall Street Journal. Musk has denied the reporting, calling it "utterly false." The device would reportedly run on a proprietary operating system and integrate technology from xAI, the AI company SpaceX acquired earlier this year.

Why it matters

SpaceX and Tesla have the manufacturing expertise and chip access to mass-produce AI hardware. If true, this would put SpaceX in direct competition with OpenAI, which is developing its own AI device with Apple's former chief design officer Jony Ive. The move also signals Musk's broader ambitions in wireless—SpaceX has signaled interest in expanding into wireless with Starlink Mobile as a potential competitor to carriers like Verizon and AT&T.

What to watch

The device is reportedly at an early stage and its design could still change. The graveyard includes failed AI device launches from companies like Humane and Rabbit, and it remains unclear whether consumers will adopt such devices or whether SpaceX intends to truly mass produce one.