Elon Musk's SpaceX Develops AI Device Aiming to Replace Smartphones

Elon Musk's SpaceX has reportedly unveiled a prototype device designed to revolutionize human interaction with artificial intelligence, potentially replacing traditional smartphones. The thin, sleek device, even more elegant than the iPhone, was shown to investors ahead of SpaceX's recent initial public offering (IPO). It is planned to run a proprietary operating system based on Qualcomm's Snapdragon chips and will be powered by xAI's AI model, Musk's AI lab integrated into his rocket empire earlier this year.

The official goal behind this development is to eliminate dependence on Apple and Google's app stores and operating systems, which Musk criticizes for high fees and strict regulatory restrictions, especially concerning the distribution of his social platform X. Despite the report, Musk aggressively denied the claims on his social media, calling them a "complete lie." Nevertheless, the news caused SpaceX's stock to plunge nearly 8%, while Qualcomm's shares rose slightly due to their hardware involvement.

Musk's move fits into his broader "super-app" strategy inspired by Chinese platforms like Tencent's WeChat and Ant Group's Alipay, which integrate multiple daily services into a single app. However, the attempt to launch a physical AI device is risky, as many previous efforts to replace smartphones with AI gadgets have failed due to consumers' reluctance to carry additional devices with limited functionality.

Competitors like OpenAI are also developing AI-based smartphones, recruiting top talent such as Apple's legendary designer Jony Ive, aiming for a launch by the decade's end. In China, ByteDance has released an AI-powered smartphone but faces challenges due to local competitors blocking access to essential services.

SpaceX's advantage lies in Musk's vast infrastructure, including Tesla's global hardware manufacturing and Starlink's satellite network, potentially enabling full control over hardware, software, and connectivity. Whether the prototype will reach production or remain a conceptual exercise, Musk's repeated denials highlight the intense competition for the next generation of personal computing.