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Musk denies WSJ report of SpaceX AI handset prototype before IPO

Created at 1 Jul · 7:04 PM1 source↑ Market-relevant
IN SHORT

Elon Musk denied a Wall Street Journal report claiming SpaceX showed investors a prototype of an AI-focused device, designed to run on a proprietary OS and use xAI technology, ahead of its IPO. Musk called the report 'utterly false' on X.

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Who's Involved

Elon Musk
denied a report about SpaceX's AI device prototype
SpaceX
reportedly showed AI handset prototype before IPO
The Wall Street Journal
reported on SpaceX's alleged AI device prototype
xAI
AI technology reportedly to be used in device
Qualcomm
chips reportedly to be used in device

↳ Why This Matters

The denial by Elon Musk addresses speculation about SpaceX's diversification into AI hardware, which could significantly impact its valuation and strategic direction ahead of a potential IPO.

Key facts

  • Elon Musk denied a Wall Street Journal report about SpaceX showing an AI handset prototype to investors.
  • The report claimed the device would use xAI technology and Qualcomm chips.
  • Musk stated the report was 'utterly false' on X.
  • SpaceX has been investing heavily in AI infrastructure and related technologies.

Elon Musk has denied a Wall Street Journal report that SpaceX showcased a prototype of an AI-focused device to investors and stakeholders prior to its initial public offering. Musk took to X, formerly Twitter, to label the report as 'utterly false' without providing further details.

The Journal, citing sources familiar with the matter, had stated that the prototype handset-like device was intended to operate on a proprietary operating system and incorporate AI technology from Musk's xAI, utilizing Qualcomm's Snapdragon chips. The report also indicated that SpaceX had informed some investors that the project was in its nascent stages, with the design still under development and no guarantee of eventual production.

SpaceX has reportedly committed billions of dollars to expand its operations beyond its core launch services and satellite internet business. These investments are directed towards AI infrastructure, the development of xAI's Grok large language model, and plans for space-based computing, as Musk aims to position the company at the forefront of the artificial intelligence race. Reuters had previously reported in February that SpaceX had intentions to develop a mobile device that would connect to its Starlink satellite internet constellation, potentially rivaling existing smartphones. Musk himself had previously suggested in January that a Starlink phone was a possibility at some point, describing such a device as significantly different from current mobile phones.

Frequently asked questions

The report claimed SpaceX showed investors a prototype of an AI-focused device designed to run on a proprietary OS and use xAI technology before its IPO.

Elon Musk denied the report on X, calling it 'utterly false'.

SpaceX has invested billions in AI infrastructure, xAI's Grok large language model, and plans for space-based computing.

What Happens Next

01SpaceX and Qualcomm did not immediately respond to requests for comment.
02Further details on SpaceX's AI and hardware development plans may emerge.

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Cadence

How It Developed

A Wall Street Journal report cited sources claiming SpaceX showed investors a prototype AI-focused device.
The prototype device was reportedly designed to run on a proprietary operating system and use xAI technology with Qualcomm chips.
SpaceX had reportedly told some investors the project was in early stages with an evolving design.
Elon Musk denied the report on X, calling it 'utterly false'.
SpaceX has invested billions in AI infrastructure, xAI's Grok model, and plans for space-based computing.

Sources

T1
Musk denies WSJ report that SpaceX showed AI handset prototype before IPOReuters

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