Elon Musk denied a Wall Street Journal report claiming SpaceX showed investors an AI-powered phone prototype slimmer than an iPhone, calling the story 'utterly false'.
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<p class="wp-block-paragraph">Elon Musk <a href="https://x.com/elonmusk/status/2072387552787759304">says a report</a> about a SpaceX AI phone prototype is "utterly false." The report, published on Wednesday <a href="https://www.wsj.com/tech/ai/spacex-showed-investors-prototype-of-elon-musks-new-ai-device-b445c57b?st=z9P7nX&reflink=desktopwebshare_permalink">by <em>The Wall Street Journal</em></a>, says SpaceX showed off a "handset-like prototype" to some investors before launching its <a href="https://www.theverge.com/science/947926/spacex-ipo-stock-shares-trading-elon-musk">record-breaking initial public offering</a> in June.</p>
<p class="wp-block-paragraph">The device was "slimmer than an iPhone," and they were told it would run on a Qualcomm Snapdragon chip, according to the <em>WSJ</em>. It would also reportedly use its own AI-enabled operating system with features powered by <a href="https://www.theverge.com/tech/872619/elon-musk-merges-spacex-with-xai-and-x">the SpaceX-owned xAI</a>.</p>
<p class="wp-block-paragraph">Last week, <a href="https://www.theverge.com/news/957502/spacex-might-compete-directly-with-att-t-mobile-and-verizon">the <em>Financial Times</em> reported</a> that SpaceX chief operating officer Gwynne Shotwell told investors that the company is con …</p>
<p><a href="https://www.theverge.com/science/960442/spacex-phone-prototype-elon-musk">Read the full story at The Verge.</a></p>
# Elon Musk denies a report about SpaceX’s AI phone prototype
Source: [https://www.theverge.com/science/960442/spacex-phone-prototype-elon-musk](https://www.theverge.com/science/960442/spacex-phone-prototype-elon-musk)
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The Wall Street Journal reports that SpaceX showed investors a ‘handset\-like prototype’ that was slimmer than an iPhone\.
The Wall Street Journal reports that SpaceX showed investors a ‘handset\-like prototype’ that was slimmer than an iPhone\.
by
Jul 1, 2026, 8:10 PM UTC


Illustration by Cath Virginia / The Verge \| Photo by Grzegorz Wajda, Getty Images
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Emma Roth
is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more\. Previously, she was a writer and editor at MUO\.
Elon Musk[says a report](https://x.com/elonmusk/status/2072387552787759304)about a SpaceX AI phone prototype is “utterly false\.” The report, published on Wednesday[by*The Wall Street Journal*](https://www.wsj.com/tech/ai/spacex-showed-investors-prototype-of-elon-musks-new-ai-device-b445c57b?st=z9P7nX&reflink=desktopwebshare_permalink), says SpaceX showed off a “handset\-like prototype” to some investors before launching its[record\-breaking initial public offering](https://www.theverge.com/science/947926/spacex-ipo-stock-shares-trading-elon-musk)in June\.
The device was “slimmer than an iPhone,” and they were told it would run on a Qualcomm Snapdragon chip, according to the*WSJ*\. It would also reportedly use its own AI\-enabled operating system with features powered by[the SpaceX\-owned xAI](https://www.theverge.com/tech/872619/elon-musk-merges-spacex-with-xai-and-x)\.
Last week,[the*Financial Times*reported](https://www.theverge.com/news/957502/spacex-might-compete-directly-with-att-t-mobile-and-verizon)that SpaceX chief operating officer Gwynne Shotwell told investors that the company is considering launching a mobile service in the US that would connect to its Starlink satellite network\. Meanwhile,[some analysts speculate](https://seekingalpha.com/news/4607456-spacex-could-buy-t-mobile-in-pitch-to-turn-starlink-into-global-connectivity-platform)SpaceX could acquire T\-Mobile\. Starlink is currently SpaceX’s only[profitable business](https://www.cnbc.com/2026/05/21/spacex-starlink-growth-profit-nasdaq-ipo.html)\.
Musk has brushed off the idea of creating a phone in the past, but didn’t rule it out completely\. During an event in Pennsylvania last year,[Musk said](https://finance.yahoo.com/news/elon-musk-says-idea-creating-143055222.html), “the idea of making a phone makes me want to die,” but added, “if we have to make a phone, we will, but we will aspire not to make a phone\.” In February, Musk said SpaceX is “not developing a phone”[after*Reuters*reported](https://www.reuters.com/business/media-telecom/starlink-fuels-spacex-growth-with-potential-phone-more-internet-services-2026-02-05/)that the company is working on a phone for Starlink\.
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SpaceX reportedly showed investors a prototype of a slim, phone-like AI device that could run on a proprietary OS and integrate xAI technology, though Elon Musk denied the claims; the device would compete with OpenAI's upcoming AI device designed with Jony Ive.
Reid Hoffman criticizes Elon Musk's AI ventures, calling SpaceX not an AI company and xAI a 'complete train wreck', while also raising concerns about the US government's handling of Anthropic's pulled models.
Yann LeCun calls Elon Musk's xAI a 'failure' and warns that high AI spending could lead to a 'big bubble explosion', criticizing the company's ability to compete with OpenAI and Anthropic.
A thread discusses SpaceX's move into AI as a defensive necessity within Elon Musk's worldview, linking it to an earlier conversation with Demis Hassabis, and notes SpaceX's IPO filing that could make Musk the first trillionaire.