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According to Thenextweb, reports surfaced regarding a secret hardware project at SpaceX that could signal a major expansion into consumer electronics. The Wall Street Journal indicated that SpaceX presented investors with a prototype for a slim AI device, described as being thinner than an iPhone. This device reportedly utilizes a proprietary operating system integrated with technology from Musk's xAI laboratory and is powered by a Qualcomm Snapdragon chipset.
Musk denies hardware development claims
Despite the detailed reporting, Elon Musk took to his social media platform X to firmly reject the allegations. He characterized the reports as "utterly false," creating a discrepancy between investor briefings and public statements. While SpaceX has not made any official announcement regarding such a device, the news caused Qualcomm shares to rise by approximately 3 percent following the initial report.
The potential project would represent a significant shift for the aerospace giant. By developing its own hardware running xAI models, SpaceX could bypass the ecosystem restrictions and fees associated with Apple's iOS or Google's Android. This move aligns with broader corporate ambitions, including:
- Direct sales of Starlink phone services to US consumers.
- Utilization of wireless spectrum acquired from EchoStar for 17 billion dollars.
- Integration of satellite connectivity with proprietary AI hardware.
Competition and the graveyard of AI gadgets
If the reports are accurate, SpaceX would face stiff competition from established tech leaders. OpenAI is currently collaborating with Qualcomm and MediaTek to develop an AI agent smartphone targeted for 2028 production. This project involves high-profile talent, including former Apple executive Paul Meade and design chief Jony Ive. However, the history of dedicated AI hardware is littered with failures, such as the Humane AI Pin and the Rabbit R1, both of which struggled to find a purpose beyond what existing smartphones already provide.
SpaceX possesses unique manufacturing advantages through its ties with Tesla, providing it with more industrial credibility than previous startup attempts. Nevertheless, Musk's flat denial leaves observers questioning whether the reports were inaccurate or if the company is quietly pivoting away from an investor pitch made only weeks ago. The ultimate feasibility of a SpaceX-branded AI device remains to be seen.