SpaceX began showing investors a smartphone-shaped prototype of the device, which is thinner than the iPhone and runs on its own operating system with deep integration of xAI technologies. According to The Wall Street Journal, the device is based on a Qualcomm Snapdragon chip, although no company has commented. Selim Elon Musk rejected the publication, calling it "completely false", whereupon SpaceX’s shares declined by more than 7%.

Development is at an early stage, and investors have been told that the design may change, and market entry remains in doubt. However, the design demonstrates Musk’s desire to control both iron and software for his AI services so that they are less dependent on iOS and Android, through which Grok is now spreading. According to people familiar with the prototype, the device reflects the idea of an "app for everything" by merging messages, payments and services into one system similar to WeChat and Alipay.

Musk sent conflicting signals about the phone: in February he denied development, and in October stated that the very idea of creating a phone made him "want to die." Entering the smartphone market will not be easy, owing to the dominance of a few large players and production and ecosystem challenges. In parallel, OpenAI is working on AI gadgets with former Apple designer Joni Aeve, and ByteDance has already released a smartphone based on its AI model Doubao.