Musk denies WSJ report that SpaceX showed AI handset prototype before IPO


FILE PHOTO: Elon Musk raises his phone towards the sky during a joint news conference with T-Mobile CEO Mike Sievert (not pictured) at the SpaceX Starbase, in Brownsville, Texas, U.S., August 25, 2022. REUTERS/Adrees Latif/File Photo

July 1 (Reuters) - Elon Musk ⁠on Wednesday denied a Wall Street Journal report that ⁠SpaceX showed investors and other stakeholders a prototype of an ‌AI-focused device ahead of its blockbuster IPO.

"Utterly false," Musk said in a post on X, without elaborating.

The Journal had reported, citing people familiar with the matter, ​that the prototype handset-like device was designed ⁠to run on a proprietary ⁠operating system, contained AI technology from xAI and would use Qualcomm's ⁠Snapdragon ‌chips.

The report added that SpaceX had told some investors the project remained in its early stages, with the design ⁠still evolving and no certainty the device would ​ultimately be built.

SpaceX ‌has invested billions of dollars to expand beyond its core ⁠launch and ​satellite internet businesses, pouring money into AI infrastructure, xAI's Grok large language model and plans for space-based computing as Musk seeks to position the ⁠company at the center of the ​AI race.

SpaceX and Qualcomm did not immediately respond to requests for comment.

Reuters reported in February that SpaceX had plans to develop a mobile ⁠device connected to its Starlink satellite internet constellation that could rival smartphones.

Musk said in January that a Starlink phone was "not out of the question at some point," adding that such a device would ​be very different from current phones.

Last month, ⁠Microsoft unveiled a prototype AI-powered badge device for workers featuring Qualcomm ​wearable chips, pitching it as an always-connected ‌assistant that uses AI agents, voice, ​a touchscreen and a camera to help users complete tasks.

(Reporting by Akash Sriram in Bengaluru; Editing by Maju Samuel)

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