Elon Musk has publicly denied recent reports claiming that SpaceX is developing an AI-powered smartphone. The rumors, which gained traction after reports of a prototype AI device, have been firmly rejected by the billionaire entrepreneur.
The speculation began when The Wall Street Journal reported that SpaceX was working on an AI handheld device powered by Qualcomm’s Snapdragon chipset and running a custom operating system with AI capabilities from xAI, Musk’s AI company. The report also suggested that SpaceX had shown an early prototype to investors ahead of its record-breaking IPO. Days earlier, the Financial Times reported that SpaceX COO Gwynne Shotwell had discussed launching a mobile service in the U.S. using the Starlink satellite network, further fueling the rumors.
In response, Musk took to X (formerly Twitter) on July 1, 2026, posting a simple but definitive statement: “Utterly false.” This is not the first time he has denied such claims. Earlier this year, he refuted a Reuters report, stating that SpaceX is “not developing a phone.” During an event in Pennsylvania last year, Musk made his position clear: “The idea of making a phone makes me want to die. If we have to make a phone, we will, but we will aspire not to make a phone.”
Despite the denial, the rumors underscore growing industry interest in dedicated AI hardware. OpenAI is also reportedly exploring purpose-built AI devices. Industry analysts believe that if OpenAI pursues such a device, Musk would want to compete. SpaceX and its sister company Tesla have the manufacturing expertise to mass-produce AI hardware, and SpaceX has signaled interest in expanding into wireless services via Starlink Mobile, potentially challenging Verizon and AT&T.
Musk continues to focus on artificial intelligence, recently predicting that AI could surpass the combined intelligence of all humans within the next four to five years. While a SpaceX smartphone remains off the table, the broader AI hardware race is accelerating, with the potential to reshape how users interact with AI through purpose-built devices.