Elon Musk quickly dismissed claims that SpaceX had privately demonstrated a sleek, handset-like AI device to investors prior to its recent IPO. Despite his firm denial, speculation about the existence of such a device continues to mount within the tech community. The alleged product reportedly features a slimmer profile than an iPhone and runs on a proprietary operating system powered by a Snapdragon system-on-chip (SoC).
These reports originated from a Wall Street Journal article that described SpaceX's secretive efforts to develop a consumer-facing AI gadget, potentially designed to compete with offerings from OpenAI. According to the report, only a select group of stakeholders had access to the prototype, which integrates xAI’s technology under the hood.
Musk’s prompt rejection of the story has only fueled conjecture, particularly as he and OpenAI’s CEO Sam Altman remain rivals in the AI industry. Attempts by SpaceX to keep the project under wraps would align with the competitive nature of AI development. Meanwhile, OpenAI itself has been working on various AI devices such as earbuds, internally known as "Sweetpea," and a pen-shaped device called "Gumdrop."
However, industry analyst Ming-Chi Kuo revealed that OpenAI has currently paused its broader range of consumer AI gadgets to focus on developing an AI-powered smartphone. This device is expected to challenge existing smartphone leaders by utilizing a customized MediaTek Dimensity 9600 chip, with Luxshare slated to handle assembly.
The ongoing battle between SpaceX’s xAI and OpenAI underscores the fast-evolving landscape of consumer AI hardware. While Musk denies any public unveiling, the reported characteristics of SpaceX’s prototype suggest the company is actively working on innovative AI interaction devices that could reshape the market.

