Elon Musk has firmly denied reports that SpaceX is working on an artificial intelligence-powered phone prototype. The Wall Street Journal claims SpaceX showed investors a ‘handset-like device’ before its IPO in June.

The report suggests the device would be thinner than an iPhone, run on Qualcomm’s Snapdragon chip and feature SpaceX-owned xAI technology. Musk has previously expressed scepticism about making phones, but didn't entirely rule out the idea. During a Pennsylvania event last year, he said: ‘The idea of making a phone makes me want to die, but if we have to make a phone, we will,’ adding that they would aspire not to.

Meanwhile, SpaceX's chief operating officer Gwynne Shotwell hinted at the company’s potential foray into mobile services, linking Starlink satellite connections. Analysts speculate SpaceX could even pursue an acquisition of T-Mobile, with its current sole profitable business being Starlink itself.

Musk has continued to dismiss phone development, telling Reuters in February that SpaceX is 'not developing a phone.' However, the ongoing rumours about AI integration and mobile services leave many wondering what the future holds for this tech giant’s diverse portfolio.