The Journal had reported, citing people familiar with the matter, that the prototype handset-like device was designed to run on a proprietary operating system, contained AI technology from xAI and would use Qualcomm's Snapdragon chips.

A report indicated the company was showing a prototype handheld AI device to investors.

The WSJ says SpaceX showed investors a handset-like AI prototype slimmer than an iPhone. Musk called the report "utterly false" on X.