July 1 (Reuters) - Elon Musk on Wednesday denied a Wall

Street Journal report that SpaceX showed investors and

other stakeholders a prototype of an AI-focused device ahead of

its blockbuster IPO.

"Utterly false," Musk said in a post on X, without

elaborating.

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 ( QCOM ) Snapdragon chips.

The report added that SpaceX had told some investors the

project remained in its early stages, with the design still

evolving and no certainty the device would ultimately be built.

SpaceX has invested billions of dollars to expand beyond its

core launch and satellite internet businesses, pouring money

into AI infrastructure, xAI's Grok large language model and

plans for space-based computing as Musk seeks to position the

company at the center of the AI race.

SpaceX and Qualcomm ( QCOM ) did not immediately respond to requests

for comment.

Reuters reported in February that SpaceX had plans to

develop a mobile device connected to its Starlink satellite

internet constellation that could rival smartphones.

Musk said in January that a Starlink phone was "not out of

the question at some point," adding that such a device would be

very different from current phones.

Last month, Microsoft ( MSFT ) unveiled a prototype

AI-powered badge device for workers featuring Qualcomm ( QCOM ) wearable

chips, pitching it as an always-connected assistant that uses AI

agents, voice, a touchscreen and a camera to help users complete

tasks.