Elon Musk has denied that SpaceX is developing an AI device with a proprietary operating system, calling rumors of a handheld device thinner than an iPhone "utterly false". However, reports suggest that SpaceX may be involved in other AI-related projects, and Musk's companies are exploring various technologies, including AI-powered modems and supercomputing. The exact nature and scope of these projects are unclear, with some outlets reporting on potential collaborations and investments.