According to a Wall Street Journal report on July 1, 2026, SpaceX presented a prototype device to investors, described as a slim handset thinner than an iPhone, designed to fundamentally change how people interact with artificial intelligence. The device reportedly integrates AI technology from xAI, which SpaceX acquired in February 2026, runs on Qualcomm chipsets with a proprietary operating system, and leverages Grok models. Elon Musk responded on X by calling the report “utterly false.” The device is distinct from Neuralink and would function as a consumer hardware product. SpaceX’s acquisition of xAI in February 2026 would retroactively make that acquisition look strategic, as xAI’s Grok models were already competitive with offerings from OpenAI and Anthropic. A SpaceX-built handset could theoretically ship with native Starlink connectivity, giving it coverage in areas where traditional cellular networks don’t reach. Musk’s denial creates an unusual situation, as the report is specific enough to move markets, but the CEO has explicitly rejected it.