Elon Musk Is Reportedly Building an AI Device to Replace Your Phone. He Just Won’t Call It That.

SpaceX reportedly showed investors a prototype of a handset-like AI device before its IPO. Musk has since called the report “utterly false.”

By Jonathan Small | edited by Jessica Thomas | Jul 02, 2026
Comment
Listen to this post

Last October, Elon Musk said the idea of making a phone “makes me want to die.” This week, the Wall Street Journal reported that SpaceX showed investors a prototype of a handset-like AI device slimmer than an iPhone ahead of its IPO. Musk has since called that report “utterly false.”

According to the Journal, the prototype runs on a proprietary operating system, integrates AI technology from SpaceX’s xAI division and would use a Qualcomm Snapdragon chipset. SpaceX told investors the project is early-stage, the design could still change, and it may never ship.

But the ambition behind it is clear. The device draws on Musk’s long-held vision of an “everything app,” a single platform combining messaging, payments, AI assistance and more, similar to China’s WeChat. Combined with Starlink connectivity and xAI’s Grok, the device would give Musk a consumer stack entirely independent of Apple and Google.

OpenAI is building a similar AI device with Apple’s former design chief Jony Ive. The race to replace the smartphone is officially on, whether Musk admits it or not.

Last October, Elon Musk said the idea of making a phone “makes me want to die.” This week, the Wall Street Journal reported that SpaceX showed investors a prototype of a handset-like AI device slimmer than an iPhone ahead of its IPO. Musk has since called that report “utterly false.”

According to the Journal, the prototype runs on a proprietary operating system, integrates AI technology from SpaceX’s xAI division and would use a Qualcomm Snapdragon chipset. SpaceX told investors the project is early-stage, the design could still change, and it may never ship.

But the ambition behind it is clear. The device draws on Musk’s long-held vision of an “everything app,” a single platform combining messaging, payments, AI assistance and more, similar to China’s WeChat. Combined with Starlink connectivity and xAI’s Grok, the device would give Musk a consumer stack entirely independent of Apple and Google.

OpenAI is building a similar AI device with Apple’s former design chief Jony Ive. The race to replace the smartphone is officially on, whether Musk admits it or not.

Jonathan Small Founder, Strike Fire Productions

Entrepreneur Staff
Jonathan Small is a bestselling author, journalist, producer, and podcast host. For 25 years, he... Read more
Join the Conversation
Leave a comment. Be kind. Critique ideas, not people.
Sort: |

Related Content