Elon Musk’s SpaceX has reportedly demonstrated a prototype of a “handset-like” artificial intelligence device to investors, according to reports from The Wall Street Journal. The device, described as being sleeker and slimmer than an iPhone, was apparently shown to stakeholders ahead of SpaceX’s potential public offering. While the design is said to be in its early stages and subject to change, it suggests a significant push by the aerospace company into the consumer technology sector.
However, Elon Musk, the CEO of SpaceX, has since publicly refuted these claims, describing the reporting as “utterly false.” Despite this denial, the reports have sparked speculation about SpaceX’s broader strategic direction. The company, alongside its automotive counterpart Tesla, possesses considerable manufacturing expertise and access to the advanced chips necessary for mass-producing sophisticated AI devices.
This rumoured foray into AI hardware aligns with SpaceX’s stated ambitions to expand its presence in the wireless communication market. The Starlink Mobile initiative, for instance, is already positioned as a potential competitor to established telecommunication providers. Some industry analysts have even gone so far as to suggest that SpaceX might consider acquiring a major wireless carrier, although such a move would entail a substantial financial outlay.
The reported device is said to operate on a proprietary operating system and incorporate technology from xAI, Musk’s artificial intelligence company that SpaceX acquired earlier this year. This approach would allow SpaceX to develop native AI interfaces, avoiding reliance on existing platforms such as Google’s Android. The intention appears to be to carve out a unique space in the burgeoning AI device market.
This potential venture also draws parallels with OpenAI’s efforts in the hardware sector. OpenAI, led by CEO Sam Altman, is reportedly collaborating with Apple’s former chief design officer, Jony Ive, on an AI device that Altman claims will offer a more intuitive experience than an iPhone. Recent reports indicate that OpenAI has brought on Paul Meade, Apple’s former Vice President in charge of the Vision Pro headset, to bolster its hardware development team, suggesting significant challenges in bringing such devices to market.
While the prospect of a SpaceX-branded AI device is intriguing, the market for such products has proven challenging. Companies like Humane and Rabbit have faced difficulties in gaining consumer traction with their AI-focused hardware. It remains unclear whether SpaceX’s reported prototype is part of a serious commercialisation strategy or simply an exploratory project. Nevertheless, the competition in the AI hardware space is intensifying, with major players vying to define the next generation of personal technology.