The Wall Street Journal (WSJ) reported on July 2 that SpaceX has developed a prototype AI handheld device resembling a smartphone, with a thinner design than the iPhone. The prototype was shown to some investors and stakeholders ahead of a recent IPO. According to sources, the project is still in its early stages. Musk immediately posted on X, calling the report completely fabricated. SpaceX has not issued any detailed official statement.
WSJ Report: Prototype Device Shown to Investors Before IPO
According to the Wall Street Journal, citing sources, SpaceX demonstrated the AI device prototype to some investors and stakeholders prior to a large-scale IPO. The prototype features a sleek design, thinner than the iPhone. SpaceX told investors that the project is in its early stages, the design may still change, and the device may not even be officially launched.
Known Specifications of the Prototype Device: Qualcomm Snapdragon Chip, xAI Operating System, Hybrid Cloud Inference Architecture
According to the Wall Street Journal and TechCrunch, the currently known specifications of the device are as follows:
Processor: Qualcomm Snapdragon chip, prioritizing energy efficiency and integrated modem support over the raw computing power needed for large on-device foundation models.
Operating System: Self-developed by SpaceX, integrating xAI technology (developer of Grok, acquired by SpaceX in early 2026; xAI had previously acquired X/Twitter).
Architecture Design: Hybrid architecture, with heavier inference tasks offloaded to the cloud.
Form Factor: Pocket-sized smartphone design, thinner than the iPhone.
SpaceX has informed investors that all of the above specifications are subject to change as the design evolves.
Musk Denies Report on X, SpaceX Has Not Issued Detailed Official Statement
Elon Musk, within hours of the Wall Street Journal report, posted on X that the content was "completely fabricated." Aside from Musk's personal statement, SpaceX has not issued any detailed official response.
Notably, Musk had previously stated publicly that "Starlink phones are not impossible" and said they would be "fully optimized for maximum energy-efficient neural networks." These two public statements stand in contrast given the context.
SpaceX Software Asset Layout: Acquisition of xAI and Cursor, Integration of Super-App Architecture
SpaceX has recently completed several software asset acquisitions. According to TechCrunch, SpaceX acquired xAI (developer of Grok) in early 2026, and xAI had previously acquired X/Twitter. SpaceX also acquired AI coding tool Cursor.
According to TechCrunch, the device is designed to support Musk's long-term goal of building a "super-app," planning to integrate instant messaging, payments, shopping, and AI assistant functions, positioning it similarly to China's WeChat and Alipay. SpaceX also has Starlink for internet connectivity and Tesla for manufacturing systems.
Consumer AI Hardware Market Background: Commercialization Struggles of Humane AI Pin and Rabbit R1
According to public market records, consumer-grade dedicated AI hardware has not achieved commercial success with two major products: the Humane AI Pin (priced at $700 with a monthly subscription fee) and the Rabbit R1, both of which received less-than-expected market response. Additionally, the AI device project by OpenAI and former Apple chief designer Jony Ive has been made public, but no product has been released yet.
This report makes SpaceX the third major non-traditional hardware AI company reportedly entering the consumer dedicated AI device market, following OpenAI/Jony Ive.
Frequently Asked Questions
What are the known specifications of SpaceX's AI handheld device prototype?
According to the Wall Street Journal and TechCrunch, the device is planned to use a Qualcomm Snapdragon chip, have a thinner design than the iPhone, run a self-developed operating system integrating xAI technology, and adopt a hybrid cloud inference architecture. SpaceX has told investors that these specifications are subject to change.
How did Musk respond to the Wall Street Journal report?
Musk posted on X within hours of the report, calling the content "completely fabricated." SpaceX has not issued any detailed official statement beyond Musk's personal statement.
When did SpaceX complete the acquisition of xAI?
According to reports, SpaceX completed the acquisition of xAI (developer of Grok) in early 2026; xAI had previously completed the acquisition of X/Twitter.
