Elon Musk calls WSJ report ‘utterly false’ after claims SpaceX showcased secret AI phone before IPO

Elon Musk has firmly rejected a report claiming that SpaceX recently presented a prototype of an AI-powered smartphone to investors ahead of its much-anticipated initial public offering (IPO).

Responding on his social media platform X, Musk dismissed the report in just two words, calling it “utterly false.” While he did not provide further details, his statement quickly fueled fresh debate about the company’s future ambitions in artificial intelligence and consumer technology.

The controversy began after a report suggested that SpaceX had privately showcased a handset-like device powered by advanced AI capabilities. According to the report, the prototype was said to feature a proprietary operating system, integration with xAI technology, and Qualcomm Snapdragon processors.

It was also claimed that the project remained in its early development phase and that there was no guarantee the device would eventually enter production. The report indicated that the design was still evolving as the company continued to explore possibilities.

SpaceX expanding beyond rockets

Although Musk has denied the latest claims, SpaceX has been steadily broadening its focus beyond space launches and satellite internet services.

The company has invested heavily in artificial intelligence infrastructure, xAI’s Grok language model, and long-term plans involving space-based computing. These investments reflect Musk’s broader strategy of positioning his businesses at the forefront of the rapidly evolving AI industry.

Industry observers believe such initiatives could eventually create a tighter ecosystem connecting Starlink, AI services, and future hardware products.

Could a Starlink phone still happen?

The latest denial does not entirely rule out the possibility of a future Starlink smartphone.

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Earlier this year, reports suggested that SpaceX had been exploring a mobile device capable of connecting directly to the Starlink satellite internet network. In January, Musk himself acknowledged that a Starlink phone was “not out of the question” in the future, although he emphasized that such a product would be very different from today’s smartphones.

Those comments have continued to fuel speculation that the company may eventually enter the consumer electronics market, especially as satellite-based communication becomes more advanced.

AI-powered devices are gaining momentum

The discussion also comes at a time when technology companies are racing to introduce AI-powered hardware.

Last month, Microsoft unveiled a prototype wearable badge designed for workplace use. Powered by Qualcomm wearable chips, the device combines AI agents, voice interaction, a touchscreen, and a built-in camera to assist users with everyday tasks.

As artificial intelligence continues to reshape the technology landscape, companies are increasingly experimenting with devices that move beyond traditional smartphones and laptops.

For now, however, Elon Musk has made his position clear the reports suggesting SpaceX has already shown investors an AI smartphone prototype are, according to him, simply not true.