SpaceX, led by Elon Musk, may be developing an AI device that is more compact than the iPhone.

      SpaceX has reportedly presented investors with a prototype of a device resembling a handset that is thinner than an iPhone. As stated by The Wall Street Journal, the device is expected to operate on a proprietary operating system, utilize a Qualcomm Snapdragon chip, and incorporate AI technology from xAI.

      This project is still in its preliminary phase, and there is no assurance that SpaceX will develop it into a finalized product. The report also highlights that it is not characterized as a conventional smartphone, which is significant. It could potentially be a phone, something akin to a specialized AI device, or a product that may never progress past the prototype phase.

      SpaceX has previously been associated with phone-like hardware.

      This isn't the first instance of SpaceX being linked to phone-like technology. Earlier this year, a report suggested that the company was investigating a phone connected to Starlink, although Musk denied any development in that direction.

      Musk has also mentioned the concept of creating a phone in the past, mainly due to his dissatisfaction with Apple and Google’s dominance over app distribution. He previously indicated he would contemplate producing an alternative phone if X were removed from key app stores.

      This context helps to clarify the significance of the new prototype, even though it remains uncertain what SpaceX is actually creating. A handset-like device tied to xAI would align with Musk’s ambitions to consolidate more of his companies’ software, services, and hardware and his vision for an "everything app," which he articulated shortly after acquiring Twitter (now X).

      If it becomes a phone, what would its emphasis be?

      Should SpaceX’s prototype evolve into a phone-like device, AI would very likely be its standout feature. Musk already has xAI, Grok, X, Starlink, and his long-standing vision for an “everything app” encompassing payments, messaging, services, and media. A dedicated device could unify these elements more seamlessly without the considerable dependence on iOS or Android.

      Privacy and control over the platform might also be integral to the device’s appeal. Musk has consistently criticized major tech companies regarding user data and app-store authority. He directed users toward Signal during the WhatsApp privacy controversy and later accused WhatsApp of sharing user data.

      A SpaceX device could capitalize on xAI, encrypted communications, X services, and possibly Starlink connectivity. This would provide it with a more distinct identity compared to many AI devices, yet creating a successful phone remains a significant challenge. Consumers expect high-quality hardware, impressive cameras, dependable software, good battery life, carrier support, and a well-developed app ecosystem.

      Currently, this is merely an early prototype, not a completed product. Only time will reveal whether SpaceX is pursuing a genuine smartphone, a more focused AI device, or something entirely different.