SpaceX and Partners Vie for Missile Defense Shield Contract

WASHINGTON – SpaceX, owned by Elon Musk, along with Palantir and Anduril, have emerged as leading contenders for a significant role in the development of the “Golden Dome” missile defense system, initially proposed by former President Donald Trump, according to multiple sources familiar with the situation.

The collaborative bid from Musk’s space company, software firm Palantir, and drone manufacturer Anduril to construct essential components of the Golden Dome project has garnered substantial interest from technology sector’s expanding array of defense startups, the sources indicated.

In an executive order issued on January 27, former President Trump identified missile attacks as the “most catastrophic threat facing the United States.”

Notably, all three companies were established by entrepreneurs who have been prominent political supporters of Trump. Musk has contributed significantly to Trump’s campaigns and has served as a special advisor, focusing on reducing government expenditure through the Department of Government Efficiency.

Despite encouraging signs from the Pentagon regarding the SpaceX-led group, some sources emphasized that the decision-making process for the Golden Dome initiative remains in its preliminary stages. The ultimate structure of the project and the selection of participants are subject to change in the coming months.

The consortium engaged with high-ranking officials from the Trump administration and the Pentagon in recent weeks to present their proposal. The plan involves constructing and deploying between 400 and over 1,000 satellites that would orbit the Earth, detecting and tracking missile movements, sources stated.

Additionally, a separate network of 200 attack satellites equipped with missiles or lasers would be responsible for intercepting enemy missiles, according to three sources. However, the SpaceX group is not anticipated to be involved in the weaponization aspect of the satellites, these sources clarified.

One source with knowledge of the discussions described them as “a departure from the usual acquisition process,” highlighting a perceived deference towards Elon Musk due to his governmental role.

SpaceX and Musk have not commented on Musk’s involvement in discussions or negotiations concerning federal contracts involving his businesses.

The Pentagon provided a limited response, stating that it would present “options to the President for his decision in line with the executive order and in alignment with White House guidance and timelines.”

The White House, SpaceX, Palantir, and Anduril did not respond to inquiries. Following the publication of the report, Musk responded on social media, stating, “This is not true.”

SpaceX has proposed an unconventional “subscription service” model for its involvement in Golden Dome. This would entail the government paying for access to the technology rather than owning the system outright.

This subscription-based approach, which is new information, could potentially bypass certain Pentagon procurement protocols, expediting the system’s rollout. While not violating any regulations, this model could lead to the government being locked into a subscription, relinquishing control over development and pricing, the sources added.

Concerns have been raised internally by some Pentagon officials regarding reliance on a subscription model for the Golden Dome project, as such an arrangement would be atypical for a large-scale defense initiative.

US Space Force General Michael Guetlein has been involved in talks on whether SpaceX should retain ownership and operational control of its portion of the system. Alternatives include US ownership and operation, or US ownership with contractor-led operations. Guetlein did not provide a comment.

Retired Air Force General Terrence O’Shaughnessy, a SpaceX advisor, has also participated in the company’s discussions with defense and intelligence leaders.

If the SpaceX-led group secures a Golden Dome contract, it would mark a significant achievement for Silicon Valley in the defense contracting sector and a potential setback for traditional contractors.

Established contractors, including Northrop Grumman, Boeing, and RTX, are also expected to play major roles. Lockheed Martin has already launched marketing efforts related to the program.

The Pentagon has received interest from over 180 companies, including startups like Epirus, Ursa Major, and Armada. The White House’s National Security Council has been briefed by several companies.

The Pentagon’s second-in-command, Steve Feinberg, will be a key decision-maker for Golden Dome.

Experts estimate that the overall cost of Golden Dome could reach hundreds of billions of dollars, with initial capabilities slated for delivery starting in early 2026 and subsequent deliveries after 2030.

Laura Grego, research director at the Union of Concerned Scientists, has questioned the feasibility of the defense system, citing multiple studies that deemed it a “bad idea, expensive and vulnerable.”

Grego added that the system could be easily overwhelmed by simultaneous attacks, potentially requiring a massive expansion of the satellite network.

SpaceX is vying for the “custody layer” aspect of the Golden Dome, which involves a satellite constellation designed to detect and track missiles and determine if they are headed towards the US, sources confirmed.

SpaceX estimates that the preliminary engineering and design work for the custody layer would cost between $6 billion and $10 billion. SpaceX has launched numerous operational spy satellites and prototypes in recent years that could be adapted for the project, sources mentioned.

Prior to a February 28 deadline, Defense Secretary Peter Hegseth issued an internal memo to senior Pentagon leadership, seeking initial Golden Dome proposals and advocating for the expedited deployment of satellite constellations.

This timeframe could benefit SpaceX due to its fleet of rockets and existing satellites that could be repurposed for the missile defense shield.

Despite these advantages, some individuals familiar with the discussions expressed uncertainty about the SpaceX group’s ability to efficiently establish a cost-effective system using new technology that can effectively protect the United States.

One source stated, “It remains to be seen whether SpaceX and these tech companies will be able to pull any of this off. They’ve never had to deliver on an entire system that the nation will need to rely on for its defense.”

Separately, some members of Congress have voiced concerns about Musk’s participation in federal contract bidding while simultaneously serving in the White House.

Senator Jeanne Shaheen stated that it is a serious problem when an individual can exert influence over the flow of billions of dollars in government contracts to his companies. Shaheen has proposed legislation to prevent federal contracts from being awarded to companies owned by special government employees like Musk.

Representative Donald Beyer also expressed concerns regarding SpaceX’s role, citing Musk’s unprecedented access to non-public information. Beyer believes that any contracts awarded to Musk or his companies are suspicious.