SpaceX builds AI device slimmer than an iPhone

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Apple and OpenAI aren't the only companies working on their own AI hardware. According to a new report, SpaceX has also developed a prototype – a device that is said to be slimmer than an iPhone and has already been shown to select investors. However, concrete details remain scarce.

The market for standalone AI devices is highly competitive, even though no product has yet achieved a major breakthrough. While Apple is working on several AI wearables simultaneously, and OpenAI is collaborating with a former Apple designer on its own device, another prominent name has now joined the fray: SpaceX. According to a report in the Wall Street Journal, Elon Musk's aerospace and AI company already has a finished prototype. However, little is certain – most of the information comes from sources close to the company's plans.

A prototype that is supposed to be slimmer than an iPhone

The report focuses on a hardware prototype with a strikingly slim design. The device is said to be thinner than an iPhone and was reportedly shown to some investors and other stakeholders in the run-up to the planned mega-IPO. Technically, it is said to run on a proprietary operating system and utilize a Qualcomm Snapdragon chip. The AI capabilities would be based on SpaceXAI's own technology.

The report doesn't offer any further details for now. There are no specifications regarding functionality, user interface, or price. Furthermore, the caveat that the product might not even be released is striking – a significant caveat at such an early stage of development.

From rocket manufacturer to broadly diversified AI corporation

That a space company is working on an AI device makes perfect sense given its recent history. SpaceX recently acquired xAI, the AI company founded by Musk, which is behind the chatbot Grok and now operates under the name SpaceXAI. Previously, the former platform Twitter, now X, had already merged into xAI – so all these parts are now consolidated under the SpaceX umbrella.

In addition, another acquisition has been announced: SpaceX has also acquired the company behind the agent-based coding platform Cursor, further expanding its AI portfolio. Fittingly, the company is also pushing ahead with the expansion of the necessary computing power – culminating in a large-scale chip project with planned data centers in space. A proprietary end device would be the logical final piece in this chain: from the computing infrastructure to the AI model to the hardware in the hands of users.

The timing coincides with the IPO plans

The timing of the prototype's presentation is noteworthy. According to the report, the demonstration took place ahead of SpaceX's planned mega-IPO, marking its entry into the public capital markets. Having a tangible AI device in tow can significantly enhance the narrative surrounding such a debut: a rocket and satellite operator is thus transformed into a platform encompassing everything from infrastructure to consumer products.

But this is precisely where the caveat lies. A prototype shown to investors is not yet a market-ready product. The suggestion that the device might never be released fits this picture – and serves as a reminder to be cautious with all expectations.

Apple and OpenAI pursue the same goal

SpaceX isn't alone in its ambition to integrate AI into a new category of devices. Apple is reportedly working on several AI wearables simultaneously, including AirPods with cameras, smart glasses, and a wearable pendant. OpenAI, in turn, is developing its own AI device in collaboration with Apple's former design chief, though its market launch has recently been postponed until 2027.

All these projects share a fundamental, as yet unresolved question: What form must an AI device take to compete with the smartphone – and not just end up as an expensive accessory? So far, no provider has delivered a convincing answer.

It is still unclear whether the prototype will become a product

The report makes one thing especially clear: the competition to develop the first mass-market AI device is attracting more and more big names. Whether SpaceX will actually bring its prototype to market or whether the project will remain in the development stage is currently impossible to predict. What is certain is that another financially powerful player has the ambition to shape the category. (Image: Shutterstock / Samuel Boivin)