Elon Musk's SpaceX is reportedly developing an AI hardware device, aiming to compete with offerings like Apple Intelligence. Investors have seen a prototype of this new gadget, which is said to be significantly slimmer than an iPhone. The device runs on a proprietary operating system leveraging xAI's technology and is expected to eventually incorporate a Qualcomm Snapdragon chipset.

This move into consumer AI hardware follows recent high-profile failures in the sector. Both the Humane AI Pin and the Rabbit R1, which attempted similar new AI form factors, faced significant market challenges and ultimately faltered. SpaceX acknowledges its own device is an early-stage concept that could still be redesigned or canceled.

Details remain scarce, and the project's future is uncertain, a stark contrast to the company's space-faring endeavors. The company is proceeding cautiously in a market that has proven difficult for even well-funded startups to navigate successfully.

The device's existence underscores a broader industry push toward dedicated AI hardware, even as established tech giants like Apple integrate AI more deeply into existing platforms.