Elon Musk and Sam Altman, who split over the future of OpenAI, are signaling a rivalry in the artificial intelligence (AI) device market. Attention is focused on the two figures, who called each other a “liar” and an “amnesiac” in a recent lawsuit dubbed the “AI trial of the century,” as they are expected to wage a new AI showdown.
According to foreign media reports, SpaceX, led by Elon Musk, is showing interest not only in developing the AI model “Grok” but also in a device business that would carry it. A report last month said the company showed a handset-type AI device prototype to some investors.
According to The Wall Street Journal (WSJ), this prototype is being designed with a thinner and sleeker design than the iPhone. It is reported that it will carry a proprietary operating system (OS) and may use Qualcomm’s Snapdragon chipset.
A SpaceX Starship carrying Starlink satellites lifts off from Starbase in Boca Chica, Texas, last month. EPA/Yonhap
Tesla and SpaceX CEO Elon Musk (left) and OpenAI CEO Sam Altman. AFP/Yonhap
Musk does not appear to have settled on a definite position yet. Last October, he said, “I’d rather die than make a phone, but if we get into a situation where we have to make one, we will.” He then personally denied a report in February this year that SpaceX would produce a device capable of using the satellite phone service Starlink.
Previously, the low-Earth-orbit satellite communications network Starlink had a strong character as a business-to-business (B2B) service for remote areas beyond the reach of ground mobile networks, or for ships and aircraft navigating the seas. In the United States, it has provided communication services in cooperation with major carriers such as T-Mobile by granting access to the satellite network.
However, the industry believes that, considering Starlink’s future, the possibility of launching an AI device using it is considerable. The analysis is that Starlink has established itself as a fairly universal service worldwide, reaching the point where it can expand into the business-to-consumer (B2C) service domain. In connection with this, SpaceX Chief Operating Officer (COO) Gwynne Shotwell recently said at an investor presentation, “We are reviewing the launch of Starlink retail products and the construction of our own ground mobile network in the United States.” The retail product would soon mean an AI device.
Considering SpaceX’s hardware manufacturing capabilities in building rockets and satellites directly, many assess that producing a form factor such as a smartphone would not be technically difficult. The analysis is that even without in-house production, it would be easy to find an outsourced manufacturing partner in the mature smartphone market. Moreover, the B2C marketing capabilities Musk has built through Tesla could also be used in the new AI device market to generate a large ripple effect. A related industry official predicted, “Musk’s strategy of not relying on the existing Big Tech ecosystem could lead to the launch of an AI device.”
Meanwhile, OpenAI, led by Sam Altman, is also drawing attention as it seeks to unveil an AI device. Last year, the company acquired “io,” an AI device startup founded by Jony Ive, who led the iPhone design at Apple, for $6.5 billion (about 9.5 trillion won). Ive’s design firm LoveFrom and former Apple engineers are also participating in the product development.
According to current reports, the next-generation AI device OpenAI envisions is not a screen-centered device that catches the eye like a smartphone. It is known as an “Ambient AI” form factor that eliminates the screen and carries voice, vision-detection sensors, and a sophisticated responsive mechanism. Jony Ive’s distinctive analog sensibility combined with ChatGPT’s performance is expected to deliver a new experience.
Whatever the direction of the AI devices led by the two figures, their determination not to be subordinated to Apple, which dominates the smartphone market, is assessed as clear. The analysis is that the competitive landscape of the AI industry is now transforming beyond simple model performance competition into providing efficiency and a differentiated experience.
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