SpaceX has an AI device prototype, and it sure sounds phone-ish
SpaceX reportedly showed investors a "handset-like" AI device before going public. It could be another signal SpaceX wants to expand into wireless.
Elon Musk ’s SpaceX has shown investors a prototype of a “handset-like” AI device, reports The Wall Street Journal .
The prototype is reportedly sleeker and slimmer than an iPhone, making us wonder if it’s something between a small touchscreen phone and a Rabbit R1 . SpaceX reportedly showed the device to investors and stakeholders before it went public, and told them it’s at an early enough stage that the design could still change.
Musk has denied the reporting, calling it “ utterly false .”
SpaceX, alongside sister company Tesla, does have the manufacturing expertise to pull off mass-producing a bunch of AI devices — not to mention access to the chips needed to power any on-device compute. SpaceX has also signaled that it’s keen to expand into wireless, with Starlink Mobile as a potential competitor to Verizon and AT&T. One analyst even went as far as to speculate that T-Mobile or AT&T would make fine acquisition targets for the rocket builder, though such a purchase would, undoubtedly, be pricey.
It’s also not clear if SpaceX is just throwing spaghetti at the wall or if it will attempt to really mass-produce and market such a device. But one thing that seems clearer is that if OpenAI is doing it, Musk would, perhaps, want to try to do it better.
As we know, OpenAI is working with Apple’s former chief design officer Jony Ive on an AI device that CEO Sam Altman has claimed will be more peaceful than an iPhone . Reports from last autumn suggest the company has been struggling to get the details right, and OpenAI recently brought on another Apple executive to potentially help move things along. News dropped last week that Paul Meade, Apple’s VP in charge of the Vision Pro headset, has joined OpenAI’s hardware team .
Like OpenAI, SpaceX’s prototype is reportedly designed to run on a proprietary operating system and integrate technology from xAI, Musk’s AI company that SpaceX acquired earlier this year. This would prevent these new devices from being trapped inside another company’s platforms (like Google’s Android). But the intent also appears to be to create something new, with native AI interfaces. That said, the graveyard is crowded with the unsuccessful launches of AI devices from companies like Humane and Rabbit. A company wanting to sell an AI device does not equate to consumers wanting to buy such a thing. Yet.
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Rebecca Bellan is a senior reporter at TechCrunch where she covers the business, policy, and emerging trends shaping artificial intelligence. Her work has also appeared in Forbes, Bloomberg, The Atlantic, The Daily Beast, and other publications.
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Key takeaways
- SpaceX may expand its operations into the mobile device market, which could impact the tech sector in Brazil.
- SpaceX's entry into the telecommunications sector could accelerate the adoption of satellite internet technologies in Brazil.
- The success of SpaceX's AI device will depend on consumer acceptance and how it aligns with local needs.
Editorial analysis
The revelation of SpaceX's AI device prototype, although still in its early stages, may signal a new era of technological innovation that could impact the tech sector in Brazil. SpaceX, known for its innovations in space transport, now seems to be targeting the mobile device market, which could open doors for collaborations and investments in AI technology in Brazil, especially considering the growing interest in connectivity and communication solutions. The integration of AI technology into mobile devices could be a competitive differentiator, particularly in a saturated market like Brazil.
Moreover, the possibility of SpaceX entering the telecommunications sector with Starlink Mobile could have significant implications for communication infrastructure in Brazil. The country still faces challenges in terms of connectivity, especially in rural and remote areas. The entry of a player like SpaceX could accelerate the adoption of satellite internet technologies, providing viable alternatives to traditional operators and potentially improving digital inclusion.
However, the AI device market is not without risks. History is filled with failed launches of devices that promised to revolutionize user interaction with technology, such as the cases of Humane and Rabbit. This raises the question of the viability of a new AI device from SpaceX and whether there is indeed consumer demand for yet another gadget. Brazil, with its diverse user base and preferences, could be an interesting testing ground, but acceptance will depend on how these devices align with local needs.
Finally, competition with companies like OpenAI, which is also developing AI devices, suggests that SpaceX will need to not only innovate but also understand market expectations. The focus on a proprietary operating system and native AI interfaces could be a strategy to avoid reliance on established platforms, but execution will be crucial for success. What to watch for next is how SpaceX will communicate and position this device in the market, especially in a scenario where consumer trust and functionality are paramount.
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