SpaceX, Elon Musk's aerospace company, has reportedly demonstrated a prototype of an "handset-like" AI device to investors, according to The Wall Street Journal. The prototype is described as sleeker and thinner than an iPhone, raising questions about whether it falls somewhere between a compact touchscreen phone and a Rabbit R1. SpaceX allegedly showed the device to investors and stakeholders before making it public, noting that the design is still in an early stage and subject to change. Musk has denied these reports, labeling them as "utterly false."

SpaceX, along with its sister company Tesla, possesses the manufacturing capabilities to mass-produce a range of AI devices, as well as access to the chips required for on-device computing. The company has also indicated interest in expanding into wireless services, with Starlink Mobile potentially competing with Verizon and AT&T. One analyst even speculated that T-Mobile or AT&T could be attractive acquisition targets for the rocket builder, though such a purchase would certainly be expensive. It remains unclear whether SpaceX is merely exploring ideas or genuinely intends to mass-produce and market such a device.

However, one pattern emerges: if OpenAI is pursuing something, Musk might want to do it better. OpenAI is collaborating with Apple's former chief design officer, Jony Ive, on an AI device that CEO Sam Altman claims will be more peaceful than an iPhone. Reports from last autumn suggest the company has struggled to refine the details, and OpenAI recently brought on another Apple executive to help move the project forward. Last week, news broke that Paul Meade, Apple's VP in charge of the Vision Pro headset, has joined OpenAI's hardware team.

Like OpenAI, SpaceX's prototype is reportedly designed to run on a proprietary operating system and integrate technology from xAI, the AI company Musk founded that SpaceX acquired earlier this year. This approach would prevent the devices from being locked into another company's platforms, such as Google's Android. The intent also appears to be creating something new with native AI interfaces. That said, the graveyard of failed AI devices is crowded, with companies like Humane and Rabbit having launched unsuccessful products. A company's desire to sell an AI device does not guarantee consumers will want to buy one.