The Wall Street Journal is reporting that SpaceX has developed a prototype AI devise to investors. They reportedly showed some investors ahead of the IPO back in June.
Prototype unveiled: SpaceX has reportedly showed select investors a prototype of a slim, handset-like AI device ahead of its anticipated IPO back in JuneNot yet a product: The company emphasized the project is still in the early stages, and the design could change or never reach production.
AI-first design: The device is intended to run a proprietary operating system and integrate AI technology from xAI, Elon Musk’s artificial intelligence company.
Hardware: According to people familiar with the project, it would be powered by a Qualcomm Snapdragon chipset.
Beyond smartphones: The concept reflects Musk’s vision of creating a dedicated AI platform that reduces reliance on Apple and Google’s mobile ecosystems.
“Everything app” vision: The device is said to support Musk’s long-term goal of an “everything app”—similar to China’s WeChat or Alipay—combining messaging, payments, shopping, travel, AI assistance, and other services into a single platform.
Strategic fit: The project complements Musk’s broader ecosystem, including Starlink, SpaceX, xAI, and X, potentially creating a unified consumer platform.
Previous denials: Musk has previously denied SpaceX was developing a smartphone, although he has acknowledged he would consider making one if circumstances required it.
Competitive landscape: The effort comes as AI companies race to define the next generation of computing devices. OpenAI, ByteDance, and others are also developing AI-centric hardware and software ecosystems.
Bottom line:
The prototype appears to be less about competing directly with the iPhone and more about creating a dedicated AI device that serves as the hub for Musk’s growing ecosystem of AI, satellite connectivity, and digital services. However, the project remains preliminary, and there is no indication that a commercial launch is imminent.
Shares of SpaceX are not having a great day with the shares trading down -$12.32 or -7.27% at $158.40. The high price was at $171.74 today. The price is trading near the lows at $157.42 Since peaking at $225.64 back on June 16, the price rotated all way down to $147.11. Since then, the price has traded up and down with $172.40 as the peak.
This article was written by Greg Michalowski at investinglive.com.