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SpaceX Secretly Unveiled New AI Device to Investors. Is It a Phone or Not?

Though publicly denied by Elon Musk, a new AI device from SpaceX wouldn't be very surprising.

Blake Stimac CNET 02 Jul 2026, 22:23 2 min read 6/10

SpaceX Secretly Unveiled New AI Device to Investors. Is It a Phone or Not?

Key Takeaways

SpaceX reportedly showed a prototype AI device to investors in early 2025, though Elon Musk publicly denied its existence on X.
The device is rumoured to integrate Starlink's direct-to-cell connectivity, enabling global coverage without a traditional mobile carrier.
xAI's Grok chatbot is speculated to be the core AI assistant, powering real-time voice and text interactions on the device.
SpaceX's Starlink division has over 2 million active subscribers, providing a potential base of early adopters for an AI gadget.
Industry analysts estimate a SpaceX-branded phone would require at least $1 billion in R&D, given the competitive smartphone market.

Elon Musk publicly denies it, but SpaceX may be working on an AI-powered device that could blur the line between smartphone and satellite terminal. The rumor, which surfaced after a reported investor presentation, suggests the company is exploring a product that leverages its Starlink network and Musk’s xAI technology. If true, it would mark SpaceX's first major consumer electronics play — and a direct challenge to established smartphone makers. The device, described as a pocket-sized AI hub, could use Starlink's direct-to-cell service to provide always-on connectivity, bypassing traditional carriers. Musk has dismissed the idea in public posts, calling it 'nonsense,' but sources close to the matter say the prototype shown to investors was functional. The move would align with Musk's broader strategy of integrating AI across his companies, from Tesla's Full Self-Driving to xAI's Grok chatbot. A SpaceX-branded phone would also create a vertical ecosystem — rockets for launch, satellites for connectivity, and devices for users. Analysts note that Starlink already has over 2 million subscribers, providing a ready market. However, manufacturing a competitive smartphone is capital-intensive and crowded. The device could instead be a specialised AI terminal for remote areas, industrial use, or emergency services. Musk's history of 'denying' products before launch — like the Tesla Cybertruck — makes the rumor worth watching. For now, the industry is buzzing about what a SpaceX AI device could mean for connectivity, AI hardware, and Musk's growing empire.

Frequently Asked Questions

The SpaceX AI device is a rumoured consumer gadget that combines artificial intelligence with satellite connectivity. It may function as a smartphone or a specialised AI terminal, using Starlink's direct-to-cell service for global coverage.

Elon Musk has denied that SpaceX is building a phone, but reports from an investor presentation suggest a prototype was shown. The device could be a satellite-connected AI hub rather than a traditional smartphone.

The device would likely use SpaceX's Starlink network, including its direct-to-cell capability that allows standard phones to connect to satellites. This would provide internet access anywhere on Earth.

It is speculated that xAI's Grok chatbot would be integrated as the core AI assistant, enabling natural language interactions, voice commands, and real-time data processing.

No official release date has been announced. The rumor surfaced in early 2025, but Musk's denial suggests any launch is speculative. Industry observers expect a potential announcement in late 2025 or later.

If released as a phone, it would compete directly. However, analysts believe it might target a niche market like remote workers, emergency services, or industrial users, rather than mass-market smartphone buyers.

Original source

www.cnet.com

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