Elon Musk Rejects Report Claiming SpaceX Is Building AI Handheld

Elon Musk has dismissed reports claiming SpaceX is developing an AI-powered handheld device, calling the latest speculation “utterly false.” His response came after reports suggested the aerospace company had shown investors an early prototype resembling a slim, iPhone-style device designed to interact with artificial intelligence systems.

According to a Wall Street Journal report, the prototype reportedly featured SpaceX’s proprietary operating system, incorporated AI technology from xAI—which SpaceX absorbed in February—and was expected to use Qualcomm chips. The report, citing people familiar with the matter, said the device remained in the prototype stage, with no official name and no indication that it would eventually reach consumers.

Musk rejected those claims on X, describing the report as “utterly false.” His comments are consistent with earlier denials. Following a similar Reuters report in February, Musk stated, “we are not developing a phone,” dismissing speculation that SpaceX intended to launch an iPhone competitor.

SpaceX has not issued an official response to requests for additional comment regarding the latest report.

Despite Musk’s denial, reports continue to suggest the company is exploring a broader expansion into mobile communications. Last week, the Financial Times reported that SpaceX Chief Operating Officer Gwynne Shotwell told investors the company was considering launching a terrestrial mobile phone service. On the same day, Bloomberg reported that SpaceX was discussing a potential partnership with Charter Communications to use the telecom provider’s ground infrastructure for mobile traffic. SpaceX already works with T-Mobile to provide direct-to-cell satellite connectivity through its Starlink network.

Analysts at Vital Knowledge expressed skepticism about the reported handheld device, writing, “SpaceX has a long way to go before successfully manufacturing a consumer device at scale and competing against the leading platforms.” They added that “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 shares were under pressure on Wednesday, falling 7.3% by around 3:30 p.m. EDT. The decline reduced Musk’s net worth by more than $50 billion, causing him to lose his status as a trillionaire.