This post was republished with permission from Zero Hedge
Elon Musk has called The Wall Street Journal’s story about a new SpaceX smartphone-like device “utterly false.”
“There is no SpaceX handset-like AI device, as claimed in the article. Shame on WSJ for publishing fake news just for clicks,” the X account DogeDesigner wrote.
BREAKING: Elon Musk has called the Wall Street Journal’s report “utterly false.”
There is no SpaceX handset-like AI device as claimed in the article.
Shame on WSJ for publishing fake news just for clicks. pic.twitter.com/EbBxw51W4Z
— DogeDesigner (@cb_doge) July 1, 2026
The story around Elon Musk’s SpaceX positioning Starlink as a potential mobile carrier to challenge legacy telcos and cable dinosaurs continues to gain momentum.
A new Wall Street Journal report says the AI and rocket company has shown investors a prototype of a handset-like device, suggesting SpaceX may be looking beyond satellites and broadband toward vertically integrated consumer devices to take on smartphone giants like Apple and Samsung.
SpaceX has developed a prototype for a handset-like device designed to reshape how humans interact with artificial intelligence: WSJ
The prototype features a sleek design that is slimmer than an iPhone; it was shown to some investors and other stakeholders ahead of the company’s…
— zerohedge (@zerohedge) July 1, 2026
The device, described by people familiar with the matter as slimmer than an iPhone with a “sleek design,” is still said to be in the prototype stage. It is expected to run on a Qualcomm Snapdragon chipset, suggesting SpaceX may be testing a consumer hardware layer that could eventually tie together Starlink connectivity, xAI software, and a proprietary operating system.
Last week, TD Cowen analyst Gregory Williams told clients that if SpaceX/Starlink fails to secure an MVNO/retail mobile deal, then the next logical move would be to acquire T-Mobile.
SpaceX told some investors that the project was at an early stage. The design could change and it is unclear whether such a device will be made.
…
The project is a sign of Musk’s sprawling ambitions as he builds a leading global satellite connectivity network, grows his rocket company and creates new AI tools. AI companies are placing a variety of bets on the future form and functionality of AI-powered devices.
The Wall Street Journal has reported that Musk has in the past weighed building a smartphone due to frustration over how Apple controls distribution of third-party apps such as X. It isn’t easy, however, for a newcomer to break into the hardware business. -WSJ
We asked the question: “Is The SpaceX Asteroid About To Impact The TelCo & Cable Dinosaurs?”
Related:
The read here is that Musk appears to be eyeing the entire consumer connectivity stack in one swoop. Starlink is the network layer, xAI provides the intelligence layer, a proprietary operating system would control the software experience, and a handset-like device would serve as the consumer endpoint.
In other words, Musk is not just challenging telcos and big cable. It is also a shot across the bow for smartphone makers, app stores, and the AI assistant layer now being embedded across consumer devices.
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