Topline
SpaceX CEO Elon Musk called a recent report the company showed investors a prototype handheld, iPhone-like device designed for interacting with artificial intelligence systems “utterly false”—although reports have continued indicating the company may be trying to expand its retail offerings.
A report indicated the company was showing a prototype handheld AI device to investors.
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Key Facts
According to a report in the Wall Street Journal, SpaceX showed some investors a prototype similar to an iPhone but “slimmer,” which would run on SpaceX’s proprietary operating system.
The device would also use AI technology from xAI, which SpaceX absorbed in February, and use chips from Qualcomm, the Journal reported citing people familiar with the matter.
However, the device is reportedly still in a prototype phase—no name for the object has been reported, and it is unclear if it will ever be released to the public.
The SpaceX chief has frequently pushed back against reports about the company developing an iPhone-like competitor—flatly stating “we are not developing a phone” after a similar report from Reuters in February.
SpaceX did not immediately respond to a request for comment from Forbes.
Tangent
Speculation about a possible mobile device from SpaceX comes as the company reportedly plans to expand its business into retail mobile phone service. Chief operating officer Gwynne Shotwell told investors the company was considering plans to offer a terrestrial mobile phone service, the Financial Times first reported last week. The same day, Bloomberg reported the company was in talks with Charter Communications about a partnership to use the internet provider’s ground infrastructure for its phone traffic. SpaceX already partners with T-Mobile to provide direct to cell satellite phone service using its Starlink satellites.
Crucial Quote
“SpaceX has a long way to go before successfully manufacturing a consumer device at scale and competing against the leading platforms,” analysts at Vital Knowledge wrote after the report on Wednesday. “Musk-led companies are given a massive benefit of the doubt when it comes to product promises (which translates into enormous valuation premiums at SPCX and TSLA based on products that are more ideas than reality), but it’s hard to imagine SpaceX becoming a force in consumer electronics.” SpaceX’s stock price is on a downswing Wednesday, having dropped 7.3% as of around 3:30 p.m. EDT. The slump drove Musk’s net worth down by more than $50 billion, eliminating his status as a trillionaire.