Technology

Musk disputes report that SpaceX showed investors an AI phone prototype

Elon Musk called a Wall Street Journal report about a SpaceX handset prototype “utterly false” as speculation grows around Starlink mobile plans.

Hana Yoshida

By Hana Yoshida · Markets Reporter

3 min read

Musk disputes report that SpaceX showed investors an AI phone prototype
Photo: The Verge

Elon Musk denied a Wall Street Journal report that SpaceX had shown investors a prototype for an AI-focused phone, pushing back on a claim that would mark a notable expansion beyond rockets and satellite internet. The denial matters because SpaceX has also been linked in recent reports to possible mobile service plans tied to Starlink.

Musk wrote on X that the Journal’s account was “utterly false.” The Wall Street Journal reported Wednesday that SpaceX had displayed a handset-style prototype to some investors before the company’s initial public offering in June.

According to the Journal, the device was thinner than an iPhone, and investors were told it would use a Qualcomm Snapdragon processor. The Journal also reported that the device would run an AI-enabled operating system, with features powered by xAI, which The Verge has described as owned by SpaceX.

The competing accounts leave the status of any SpaceX phone unclear. Musk’s denial directly challenges the Journal’s report, while earlier comments from Musk and other reporting have pointed to ongoing questions about whether SpaceX wants a larger role in consumer mobile connectivity.

Mobile ambitions tied to Starlink

The Financial Times reported last week that SpaceX Chief Operating Officer Gwynne Shotwell told investors the company was considering a U.S. mobile service that would connect through the Starlink satellite network. That report focused on service, rather than a SpaceX-built handset.

Some analysts have speculated that SpaceX could pursue T-Mobile as part of a broader effort to make Starlink a global connectivity platform, according to Seeking Alpha. CNBC reported in May that Starlink is SpaceX’s only profitable business.

SpaceX has already built Starlink into a major part of its business, and the reports around mobile service suggest the company is weighing how far to extend that network into consumer communications. The Journal’s phone report would represent a more direct move into device hardware, if accurate.

Musk has resisted the phone idea before

Musk has publicly sounded reluctant about building a phone. At an event in Pennsylvania last year, Yahoo Finance reported, Musk said “the idea of making a phone makes me want to die,” while adding that “if we have to make a phone, we will, but we will aspire not to make a phone.”

In February, Musk said SpaceX was “not developing a phone” after Reuters reported that the company was working on a Starlink phone. His latest statement is another direct denial, this time aimed at the Journal’s account of an investor presentation involving a prototype.

The dispute now centers on whether SpaceX merely explored mobile services around Starlink or also showed investors device hardware. The Journal says a prototype was presented; Musk says that report is false.

This story draws on original reporting from The Verge.