Elon Musk's SpaceX Explores Hardware Market with Slender AI Handset Concept
July 3, 2026
A recent report from the Wall Street Journal suggests that SpaceX has developed a prototype for a new handheld artificial intelligence tool. Investors were reportedly given a glimpse of the device, which is described as being more compact and thinner than a standard Apple iPhone. While its exact category remains undefined, the hardware appears to sit somewhere between a traditional smartphone and specialized AI gadgets like the Rabbit R1. Despite these claims, Elon Musk has publicly dismissed the report as inaccurate, characterized it as being completely untrue.
Industry insiders believe SpaceX is well-positioned for such a venture due to its existing industrial infrastructure and sister company Tesla's large-scale manufacturing capabilities. Furthermore, the company has access to the high-performance semiconductors necessary for processing AI tasks directly on a physical unit. This potential move into hardware aligns with SpaceX's broader interest in the telecommunications sector. Through its Starlink satellite network, the company is already positioning itself as a rival to major carriers like AT&T and Verizon. Some market experts have even suggested that SpaceX could potentially acquire an established wireless provider to bolster its mobile ambitions, though the cost of such a merger would be immense.
The development of this device may be a response to the ongoing efforts of OpenAI, which is currently collaborating with former Apple design chief Jony Ive and recently hired Paul Meade to create its own AI-centric hardware. SpaceX’s proposed device would reportedly utilize a unique operating system and leverage technology from xAI, Musk’s dedicated artificial intelligence firm. By developing a proprietary platform, the company could bypass the limitations imposed by established ecosystems like Android or iOS.
While the concept aims to reinvent the user experience through native AI interfaces, the market for such products remains unproven. Previous attempts by companies such as Humane and Rabbit have struggled to gain mainstream traction. Whether SpaceX will commit to a full-scale commercial release or if the prototype is merely an experimental project remains to be seen, as the design is still in its early, fluid stages.
Read original at TechCrunch.