SpaceX has shown investors a prototype AI device described as sleeker and slimmer than an iPhone, according to a Wall Street Journal report, signalling that Elon Musk may be preparing to enter the AI hardware market in direct competition with OpenAI. Musk has publicly denied the reporting.
The prototype is said to run on a proprietary operating system and integrate technology from xAI, Musk’s AI company that SpaceX acquired earlier this year, positioning any future device outside the ecosystems of Google’s Android or Apple’s iOS. SpaceX told investors the design remains at an early stage and could still change substantially before any public announcement.
SpaceX brings meaningful advantages to hardware development, including manufacturing expertise shared with Teslaand access to the chips required for on-device AI compute. The company has also signalled ambitions in wireless connectivity through Starlink Mobile, with some analysts speculating about potential telecom acquisitions.
The development mirrors OpenAI’s own AI device effort, being developed in collaboration with former Apple chief design officer Jony Ive and recently bolstered by the addition of Paul Meade, Apple’s VP responsible for the Vision Pro headset.
Both companies are entering a space where prior entrants including Humane and Rabbit failed to generate sustained consumer demand, a reminder that strategic intent and market appetite remain two very different things.
