Elon Musk's SpaceX has recently unveiled a prototype of an AI device resembling a "handset," according to a report from The Wall Street Journal. This device is touted to be more streamlined and thinner than an iPhone, prompting speculation that it could be a hybrid of a compact touchscreen phone and a Rabbit R1. SpaceX shared this prototype with investors and stakeholders before its public reveal, noting that its design is still in a preliminary phase and subject to change.
Musk, however, has dismissed this report as "utterly false."
Given its manufacturing capabilities and expertise, SpaceX, along with its sibling company Tesla, is well-positioned to mass-produce such AI devices. They also have access to the necessary chips that could facilitate on-device computing. Additionally, SpaceX has expressed interest in expanding its wireless services, positioning Starlink Mobile as a competitor to major telecom providers such as Verizon and AT&T. One analyst even speculated that T-Mobile or AT&T could be potential acquisition targets for the rocket company, although such a move would likely come with a hefty price tag.
It remains uncertain whether SpaceX’s initiative is merely exploratory or if there are serious plans to produce and market this device on a large scale. However, one aspect seems apparent: if OpenAI is venturing into this space, Musk may feel compelled to aim for a superior version.
OpenAI is currently collaborating with Jony Ive, Apple's former chief design officer, on an AI device touted by CEO Sam Altman to be more user-friendly than an iPhone. Reports from last fall indicated that OpenAI faced challenges in refining the device, and recently, they brought onto their hardware team another former Apple executive, Paul Meade, who previously oversaw the Vision Pro headset project.
Similar to OpenAI's efforts, SpaceX's prototype is said to run on a proprietary operating system and is expected to incorporate technology from xAI, Musk's AI firm acquired earlier this year. This approach could help ensure the new devices aren't limited by another company's platforms, such as Google's Android. The goal seems to be not only to innovate but also to develop native AI interfaces. However, the landscape for AI devices is littered with failures from companies like Humane and Rabbit, indicating that the desire to sell an AI device doesn't necessarily translate into consumer demand—at least not yet.

