Elon Musk denies reports of SpaceX building a handheld AI device

AI is everywhere you see today, with industry giants doing everything in their capacity to get an edge over their competitors. So it didn’t come as a surprise when a new report this week claimed that Elon Musk’s SpaceX had demoed a prototype of an AI device to investors.

According to The Wall Street Journal, this smartphone-like device would run on Qualcomm silicon and incorporate AI tech from SpaceX subsidiary xAI, while featuring a custom operating system. Musk has attempted to pour cold water over that idea by calling it “utterly false” in response to a now-deleted tweet.

The original report also stated that this AI device prototype was in its nascent stages of development, with investors supposedly told that its launch wasn’t guaranteed. Investors were given a demo of the prototype just before the SpaceX IPO that turned Musk into the world’s first trillionaire, the WSJ claimed.

This news (and the subsequent denial) comes months after Reuters indicated that a Starlink-based phone was in the works. Unsurprisingly, Musk denied those claims shortly after that report’s publication.

As for the SpaceX/xAI-branded AI prototype, despite Musk’s denial, there’s still the possibility this is moving forward in some form, and may be brought to market in the future. Exactly when that will happen is anybody’s guess, however.

WSJ’s original coverage on Wednesday also noted that the idea for this AI-based device stems from Musk’s longing for a WeChat-style “everything app” offering every imaginable service in one place.

For the uninitiated, China’s WeChat app consolidates services such as shopping, ride-hailing, messaging, payments and much more into a single app. An app/device like this would also help SpaceX and xAI avoid dependency on major app markets, such as the Apple App Store.

In a separate, but somewhat related development, a recent Financial Times story suggested that Starlink could become a standalone wireless carrier in the US. This carries some weight, particularly given SpaceX’s recent acquisition of the 65 MHz of wireless spectrum from EchoStar.

That means there could be a high likelihood that you’ll see a Starlink-based wireless carrier potentially taking on the likes of AT&T and Verizon in the US before a SpaceX/xAI handheld hits the market.