"Utterly False": Musk Denies WSJ Report On SpaceX Handset-Like AI Device

Musk Blasts WSJ's Reporting

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

WSJ's Reporting 

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.

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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:

• SpaceX Builds A Regulatory Moat Around Its Starlink Empire

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.