Speculation around a SpaceX AI smartphone has intensified following reports of an AI hardware prototype. Elon Musk has responded to the rumors, providing fresh insight into what the company may be developing and whether a smartphone is actually part of its plans. Despite those developments, there is currently no official indication that SpaceX plans to manufacture smartphones or AI-powered handheld devices. Musk has continued to focus on artificial intelligence. He recently predicted that AI could surpass the combined intelligence of all humans within the next four to five years.
The latest speculation began after The Wall Street Journal reported that SpaceX was working on an AI-powered handheld device. According to the publication, the prototype would run on Qualcomm's Snapdragon chipset and feature a custom operating system with AI capabilities powered by xAI. The report has claimed that SpaceX showcased an early prototype to investors ahead of its record-breaking IPO.
The latest report arrived only days after the FT report claimed that SpaceX Chief Operating Officer Gwynne Shotwell had discussed the possibility of launching a mobile service in the United States using the Starlink satellite network. Separately, some analysts have also speculated that SpaceX could eventually explore acquiring T-Mobile, further fuelling smartphone rumours.
Soon after the report gained attention, Musk responded on X with a brief but direct statement, calling the claims "utterly false."
This isn't the first time the Tesla Chief has denied reports about a SpaceX smartphone. Earlier this year, he responded to a Reuters report by stating that SpaceX is "not developing a phone."
Even last year, while speaking at an event in Pennsylvania, Musk made his position clear. "The idea of making a phone makes me want to die." He also added: "if we have to make a phone, we will, but we will aspire not to make a phone."
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SpaceX, alongside sister company Tesla, does have the manufacturing expertise to pull off mass-producing a bunch of AI devices. The company has also signaled that it’s keen to expand into wireless, with Starlink Mobile as a potential competitor to Verizon and AT&T.
The AI hardware race is gathering pace as tech giants look beyond software. Alongside speculation around Elon Musk's plans, reports suggest OpenAI is also developing dedicated AI hardware. If these projects materialize, they could redefine how users interact with AI, shifting toward purpose-built devices with deeper integration and faster experiences.
Industry analysts believe that if OpenAI is doing something, Musk would want to try to do it better. Like OpenAI, SpaceX’s prototype is reportedly designed to run on a proprietary operating system and integrate technology from xAI, Musk’s AI company that SpaceX acquired earlier this year.