Elon Musk publicly denied reports that SpaceX showed investors a prototype handheld AI device ahead of its June 2026 IPO, calling the claims "utterly false" [1, 2, 3]. On July 1, 2026, The Wall Street Journal reported that SpaceX had shown some investors a handset-like device slimmer than an iPhone, running a proprietary SpaceX operating system integrated with AI technology from Musk's AI company, xAI [1, 2, 4, 5]. The device reportedly uses Qualcomm Snapdragon chips [1, 2, 4].
SpaceX told investors the handset project remains in early development with an evolving design and uncertain commercial release [1, 6]. Musk has previously expressed reluctance about making a phone, stating, "the idea of making a phone makes me want to die, but if we have to make a phone, we will, but we will aspire not to make a phone" [2].
SpaceX is investing heavily in AI infrastructure, including the Grok large language model from xAI, and space-based computing [1, 7]. The company also plans to offer a mobile phone service connected to its Starlink satellite network, building on a 2025 partnership with T-Mobile to provide Starlink access on smartphones [2, 4, 5].
SpaceX held its initial public offering on Nasdaq on June 12, 2026, raising approximately $75 billion at $135 per share [8]. Following the controversy over the AI handset report, SpaceX's shares dropped about 7.8% on July 1 [8].
The conflicting accounts between the Wall Street Journal's report and Musk's denial have stirred investor debate. SpaceX has yet to confirm any timeline for the handset's commercial launch.
