SpaceX has shown investors a prototype of an iPhone-like AI device, designed to be thinner and more stylish, running its own OS and integrating xAI technology. The device aims to bypass traditional smartphone ecosystems and telecom operators like Verizon and AT&T by leveraging Starlink. This move targets OpenAI, which is developing a rival AI device with ex-Apple designer Jony Ive. Although Musk called the report fabricated, the project signals a shift from cloud AI to native hardware ecosystems.