Elon Musk categorically denied a report that his company SpaceX is developing a prototype of an AI-powered smartphone, describing the report as "completely untrue," in the latest episode of debate over the company's future plans beyond the space sector.

The Wall Street Journal had reported that SpaceX showed a number of investors, before its record-setting initial public offering in June, a prototype of a device resembling a smartphone, designed to change the way users interact with artificial intelligence technologies.

According to the report, the device had a thinner design than iPhones, relied on a Qualcomm processor, and featured a proprietary operating system equipped with AI capabilities based on technologies from Musk's xAI company.

The report indicated that the device is based on Musk’s vision of creating an "everything app" similar to China's WeChat, with the possibility of integrating technologies from Tesla, SpaceX, and xAI into a single platform.

The report added that the project is still in its early stages, the final design may change, and there is no confirmation that the device will reach the market.

However, Musk quickly denied these claims on his platform, affirming that the report is "completely untrue," consistent with his previous statements in which he stressed that SpaceX is not developing a smartphone.

Musk has stated on multiple occasions that he does not want to enter the smartphone market, saying during a public event last year: "The idea of making a phone makes me want to die," but he added that he might be forced to if circumstances dictate, such as his apps facing restrictions from app stores.

The debate comes amid growing speculation about SpaceX’s expansion into communications services, after the Financial Times reported last week that the company’s Chief Operating Officer, Gwynne Shotwell, informed investors that the company is considering launching a mobile phone service in the United States based on its Starlink satellite network, while some analysts anticipate a possible future acquisition of U.S. telecom company T-Mobile, given that Starlink is currently the company’s most profitable activity.

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2 July 2026 | Last updated: 2 July 2026

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