Elon Musk Crushes Starlink Phone Rumors: SpaceX Focuses on xAI Merger and Satellite Dominance

Key Takeaways

• Elon Musk twice confirmed on X that SpaceX is not developing a Starlink-based phone, directly stating “We are not developing a phone” and accusing Reuters of “lying relentlessly.”
• Reuters reported internal SpaceX discussions about building a direct-to-satellite mobile device, citing sources familiar with the matter.
• Musk previously noted in January that a phone isn’t out of the question “at some point,” but it would need to differ majorly from current phones, optimized for max performance/watt neural nets.
• SpaceX is prioritizing other projects, including a recent merger with xAI, amid rumors of too many ongoing initiatives.
• Starlink operates 9,500 satellites serving over 9 million users, with 650 dedicated to direct-to-device cellular coverage, making a phone a potential future idea but not current focus.

In the ever-buzzing world of Elon Musk’s tech empire, rumors of a “Starlink phone” have been swirling like satellites in low Earth orbit. Just yesterday, Reuters dropped a bombshell report suggesting SpaceX was gearing up to launch a direct-to-satellite mobile device to supercharge revenue ahead of a potential IPO. ❶ But true to form, Musk wasted no time shutting it down—twice—on X, declaring, “We are not developing a phone” and accusing Reuters of “lying relentlessly.” ❷ ❸ As a space tech blogger who’s tracked SpaceX’s meteoric rise for over a decade, this latest drama underscores a bigger picture: SpaceX is laser-focused on its core missions amid massive expansions like the recent xAI merger. Let’s dive deep into what really happened, why it matters, and what it means for the future of connectivity.

The Reuters Report: Fueling Speculation or Just Clickbait?

Reuters’ article, published on February 5, 2026, cited “people familiar with the matter” claiming SpaceX executives had been discussing a mobile device that connects directly to the Starlink constellation. ❶ The report painted this as part of a broader strategy to diversify Starlink’s revenue streams, including enhanced internet services and even space-tracking tech, all timed for a pre-IPO boost. ❹

Key highlights from the report:

• Direct-to-Device Ambitions: A phone-like gadget that bypasses traditional cell towers, leveraging Starlink’s satellite network for global coverage.
• Revenue Play: Starlink is already SpaceX’s cash cow, driving massive growth. A phone could rival smartphones from Apple or Samsung, especially in remote areas. ❶
• Timing: With SpaceX eyeing public markets, new products could inflate valuations.

This isn’t the first whisper of a Starlink phone—rumors have persisted for years, amplified by partnerships like T-Mobile’s direct-to-cell trials. ❺ But Reuters’ sources suggested internal talks had escalated, sparking investor excitement and X frenzy.

Musk’s No-Nonsense Response: “Reuters Lies Relentlessly”

Elon Musk doesn’t mince words, and his X posts on February 5 were no exception. Replying to users sharing the Reuters piece, he fired off:

1. “Reuters lies relentlessly.”
2. “@mark_k @Starlink @SpaceX We are not developing a phone.” ❸

This double denial echoes Musk’s history of debunking hype. Coverage exploded across TechRadar, PCMag, and Teslarati, with headlines like “Elon Musk Dispels Rumors” dominating feeds. ❻ ❹ Musk’s frustration with media isn’t new—he’s called out “fake news” on everything from Tesla timelines to Mars plans. Here, it highlights a tension: anonymous sources vs. the CEO’s direct word.

Pro Tip for Investors: Always prioritize Musk’s X account over secondary reports. It’s the primary source for SpaceX intel.

Not Entirely Off the Table: Musk’s January Tease

While the denial is firm now, rewind to late January 2026. Musk told followers a Starlink-optimized phone wasn’t “out of the question at some point,” but it would need to be radically different—optimized for “max performance/watt neural nets.” ❻ Translation? Not your average iPhone, but an AI powerhouse running Grok-like models on satellite data, ultra-efficient for edge computing in space or remote ops.

This nuance matters:

• AI Integration: Post-xAI merger (more below), a future device could blend Starlink bandwidth with xAI smarts for real-time analytics—think disaster response or autonomous drones.
• Technical Hurdles: Direct-to-cell requires low-power chips, advanced antennas, and FCC approvals. SpaceX has 650+ satellites dedicated to this already, serving millions indirectly. ❼

SpaceX’s Real Priorities: The Game-Changing xAI Merger

Amid phone chatter, SpaceX’s biggest news is the blockbuster merger with xAI, announced just days ago on February 2-3, 2026. Valued at a staggering $1.25 trillion—the largest M&A deal ever—SpaceX acquired xAI, folding Musk’s AI powerhouse (home to Grok) into its rocket empire. ❽ ❾

Merger Breakdown:

• Valuations: SpaceX at $1T, xAI at $250B. ❿
• Strategic Synergies:AspectSpaceX ContributionxAI ContributionHardwareRockets, 7,800+ satellitesAI models (Grok)DataGlobal telemetry, imageryTraining on vast datasetsApplicationsMars missions, StarshipAutonomous flight, optimization
• Musk’s Vision: A “vertically integrated innovation engine” for space AI, from satellite swarms to data centers in orbit. ⓫ ⓬

No wonder a phone isn’t priority #1. SpaceX has Starship tests, Starlink scaling to 19,000+ satellites (FCC-approved), and now AI fusion. Rumors of “too many things” ring true—Musk’s plate is overflowing. ⓭

Starlink’s Direct-to-Device Powerhouse: The Real Story

Forget phone fantasies; Starlink’s direct-to-cell (D2C) is already revolutionary:

• Fleet Stats: Over 7,800 satellites in orbit, with 650+ in very low Earth orbit (VLEO) for D2C. Plans for 19,000+ total. ⓮ ❼
• User Base: 8-9.2 million active customers across 150+ countries; D2C has connected 12M+ people in emergencies. ⓯ ⓰ ⓭
• Capabilities: Voice, video, messaging without towers—partnered with carriers like T-Mobile.

Competitive Edge:

1. Beats Apple’s Emergency SOS (iPhone 14+) with always-on global coverage.
2. Scalable for IoT, maritime, aviation.
3. Post-merger, AI could enable predictive routing or anomaly detection.

What This Means for You: Insights and Advice

For Consumers:

• No Starlink phone soon, but D2C means better satellite texting/calls on existing phones via carrier deals.
• Advice: If you’re in rural areas, grab a Starlink kit now—speeds up to 220Mbps.

For Investors:

• SpaceX valuation could hit $1.5T+ post-merger. Watch for Starship milestones and IPO signals.
• Risk: Regulatory scrutiny on monopolies (satellites + AI).

My Expert Opinion: A dedicated phone might emerge eventually, but as an AI-neural edge device, not a consumer gadget. SpaceX’s genius is ruthless prioritization—Musk knows phones are commoditized; satellites + AI is the moat. This rumor bust reinforces discipline amid hype.

Wrapping Up: Eyes on the Stars, Not the Rumors

Elon Musk’s phone denial is classic damage control, but it spotlights SpaceX’s trajectory: from satellite internet king to AI-space titan. With xAI integrated and D2C humming, the real innovations are in orbit. Stay tuned—Mars awaits, and phones? Maybe in 2030.

What do you think—will we ever see a Starlink device? Drop your thoughts below!