TECH NEWS: The Wall Street Journal says SpaceX showed investors a surprising AI-focused prototype, but Elon Musk has categorically denied the report.

Alongside OpenAI’s reported consumer AI-device ambitions, a similar rumor has now emerged around SpaceX. The Wall Street Journal reported that Elon Musk’s company recently showed its own AI-focused handheld prototype to a select group of investors and business stakeholders.

According to the report, the alleged device is slimmer than an iPhone, uses a Snapdragon system-on-chip, and runs on a proprietary operating system. The system would reportedly integrate technology from xAI as well.

The Wall Street Journal’s sources said the project remains in an early stage, its final design could change, and there is no guarantee the device will ever enter production. SpaceX and Qualcomm did not comment when contacted by the newspaper.

Elon on the new WSJ report that SpaceX has developed a prototype for a handset-like device designed to reshape how humans interact with AI: https://t.co/pO9C5Sf9qc

– Sawyer Merritt (@SawyerMerritt) July 1, 2026

Musk soon issued an unequivocal denial of the Wall Street Journal report, calling it “utterly false.” The denial did not, however, clarify whether SpaceX or another Musk-linked company is working on any other consumer hardware in a similar category.

The rumor is especially notable because multiple reports have also circulated about OpenAI’s consumer AI-device plans. Previous coverage has mentioned AI-powered earbuds, a pen-shaped device, and the possibility of an AI-focused smartphone.

Analyst Ming-Chi Kuo wrote in April that OpenAI may have put a broader range of planned devices on hold to concentrate on an AI smartphone. According to Kuo, Luxshare could become the phone’s primary assembler, while the device may use a customized MediaTek Dimensity system-on-chip.

For now, both companies’ consumer-hardware plans remain uncertain. The SpaceX device report rests on Wall Street Journal sources, while Musk has firmly denied it, so no specific product should be treated as fact before an official announcement.

Source: WCCFTech, The Wall Street Journal