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 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.