NEW YORK — Credit unions may have yet another tech platform to respond to as Elon Musk’s SpaceX has developed an early prototype of a smartphone-like device designed to integrate artificial intelligence and satellite technology, though the project remains in its early stages and may never reach the market, according to a report by The Wall Street Journal.
The Wall Street Journal reported that SpaceX recently showed the prototype to selected investors and other stakeholders ahead of the company’s anticipated initial public offering. The publication, citing people familiar with the matter, said the device features a slim design, is thinner than Apple’s iPhone and is intended to operate on a proprietary operating system powered by SpaceX’s xAI artificial intelligence technology.
According to the Journal, the prototype is expected to use a Qualcomm Snapdragon processor. SpaceX reportedly told investors the project remains in the early development phase and that both the design and plans for commercialization could change.
Representatives for SpaceX and Qualcomm did not immediately respond to requests for comment, the Journal reported.
Part of Broader Effort
The reported project reflects Musk’s broader effort to expand his technology ecosystem beyond rockets, satellites and artificial intelligence. According to the Journal, some investors in SpaceX and Tesla have been told Musk has long envisioned a consumer device that would serve as a platform for technologies developed across his companies, reducing reliance on Apple and Google’s mobile operating systems.
Musk has previously expressed frustration with Apple’s control over app distribution. While denying in February that SpaceX was developing a smartphone, he has also said he would consider building one if circumstances required it. Last October, Musk said, “The idea of making a phone makes me want to die. But if we have to make a phone, we will.”
The Journal said the prototype is based on Musk’s long-discussed vision of an “everything app,” similar to so-called super apps popular in Asia, which combine messaging, payments, shopping, travel bookings and other services into a single platform. Such an approach could allow users to access AI-powered services without relying on traditional app stores.
The AI Device Race
The report noted the effort comes as technology companies on both sides of the Pacific race to define the next generation of AI-enabled devices. OpenAI is reportedly developing its own family of AI hardware products, while China’s ByteDance has introduced an AI-powered smartphone built around its Doubao large language model, though that effort has faced challenges gaining access to competing online services.
SpaceX already operates its Starlink satellite internet network and has partnered with carriers including T-Mobile to provide satellite-based cellular connectivity in areas without traditional wireless coverage, the Journal reported.
