SpaceX unveils prototype of 'handset-like' AI device

Elon Musk's SpaceX has shown investors a prototype of a 'handset-like' AI device, according to a report by The Wall Street Journal. The device is reportedly sleeker and slimmer than an iPhone, resembling a small touchscreen phone or a Rabbit R1. SpaceX showed the device to investors and stakeholders before it went public, and reportedly told them it's at an early enough stage that the design could still change.

Musk has denied the reporting, calling it 'utterly false.' SpaceX, alongside sister company Tesla, has the manufacturing expertise to mass-produce AI devices, as well as access to the chips needed to power on-device compute. The company has also signaled interest in expanding into wireless with Starlink Mobile, a potential competitor to Verizon and AT&T. One analyst speculated that T-Mobile or AT&T would make fine acquisition targets for the rocket builder, though such a purchase would be pricey.

The device's potential for mass production and marketing is unclear, but if OpenAI is pursuing an AI device, Musk may want to try to do it better. OpenAI is working with Apple's former chief design officer Jony Ive on an AI device that CEO Sam Altman claims will be more peaceful than an iPhone. Reports suggest the company has struggled to get details right, and recently brought on another Apple executive to help move things along.

SpaceX's prototype reportedly runs on a proprietary operating system and integrates technology from xAI, Musk's AI company acquired by SpaceX earlier this year. This would prevent the device from being trapped inside another company's platforms. The intent appears to be to create something new with native AI interfaces.

Why this matters: The emergence of SpaceX's AI device prototype has significant implications for the tech industry. If successful, it could provide a new player in the wireless market, potentially disrupting the dominance of Verizon and AT&T. For developers, this could mean new opportunities for creating AI-powered applications and services.

For consumers, it could offer a new choice for AI-enabled devices, potentially with more peaceful and intuitive interfaces. However, the device's success is far from guaranteed, and questions remain about consumer demand for AI devices. Open questions include how SpaceX plans to market and price the device, as well as how it will differentiate itself from existing smartphones and AI devices.

As the AI device market continues to evolve, it will be crucial to watch how SpaceX and other players navigate the challenges and opportunities in this space.