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techcrunch ai · July 1, 2026

Musk denies WSJ report on SpaceX AI handset

spacex reportedly showed investors a sleek ai handset integrating xai tech, but elon musk denied the report, casting doubt on the hardware's existence amid a crowded ai device market.

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spacex reportedly showed investors a sleek, handset-like device designed to run a proprietary os integrated with xai technology, but elon musk publicly denied the report. the prototype is described as slimmer than an iphone and represents spacex's potential move into consumer hardware, leveraging manufacturing expertise from tesla and starlink wireless ambitions. this development positions spacex against openai's unconfirmed project with jony ive, though the market has already rejected devices like the humane pin and rabbit r1. the company must prove consumer demand exists for native ai interfaces that bypass established platforms like android.

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