SpaceX and Partners Lead Race for “Golden Dome” Missile Defense Shield

WASHINGTON: SpaceX, led by Elon Musk, along with its partners Palantir and Anduril, has emerged as a leading contender for a significant role in President Donald Trump’s “Golden Dome” missile defense shield, according to multiple sources familiar with the situation.

The collaboration between Musk’s rocket and satellite company, software developer Palantir, and drone manufacturer Anduril aims to construct essential components of Golden Dome. This initiative has attracted considerable interest from the growing number of defense startups in the technology sector.

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

All three companies were founded by entrepreneurs who have shown substantial political support for Trump. Musk has contributed over $250 million to support Trump’s election efforts and is now serving as a special advisor to the president, focusing on reducing government spending through the Department of Government Efficiency.

Despite the Pentagon’s positive indications regarding the SpaceX group, some sources have emphasized that the decision-making process for Trump’s Golden Dome is still in its initial stages. The final structure and selection of participants could undergo significant changes in the coming months.

The three companies have recently engaged with high-ranking officials in the Trump administration and the Pentagon to present their plan. This plan involves building and launching between 400 and over 1,000 satellites to orbit the Earth, designed to detect missiles and monitor their movements, according to sources.

Additionally, a separate fleet of 200 attack satellites, equipped with missiles or lasers, would be deployed to intercept and destroy enemy missiles, as stated by three sources. The SpaceX group is not expected to participate in the weaponization aspect of the satellites, these sources clarified.

One source described the discussions as “a departure from the standard acquisition process,” noting “an attitude that the national security and defense community needs to be sensitive and accommodating to Elon Musk due to his governmental role.”

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

The Pentagon provided a statement that it would present “options to the President for his decision, consistent with the executive order and aligned with White House guidance and timelines,” but did not address detailed questions.

The White House, SpaceX, Palantir, and Anduril also did not respond to inquiries. Following the story’s publication, Musk responded on his social network X, stating, “This is not true,” without providing further details.

Subscription Service

SpaceX has proposed an unconventional approach by offering its role in Golden Dome as a “subscription service.” This would involve the government paying for access to the technology rather than owning the system outright.

This subscription model, previously unreported, might bypass certain Pentagon procurement protocols, potentially accelerating the system’s rollout, according to sources. While not violating any regulations, this approach could commit the government to a subscription, potentially relinquishing control over the system’s development and pricing.

Some Pentagon officials have voiced internal concerns about relying on a subscription-based model for the Golden Dome, as it would be unusual for such a major defense program.

US Space Force General Michael Guetlein has been involved in discussions regarding whether SpaceX should own and operate its segment of the system. Alternative options include US ownership and operation or US ownership with contractor-managed operations. Guetlein did not comment on the matter.

Retired Air Force General Terrence O’Shaughnessy, a top advisor to Musk at SpaceX, has participated in the company’s recent discussions with senior defense and intelligence leaders. O’Shaughnessy did not respond to requests for comment.

If the SpaceX-led group secures a Golden Dome contract, it would represent Silicon Valley’s most significant achievement in the lucrative defense contracting industry, posing a challenge to traditional contractors.

However, established contractors like Northrop Grumman, Boeing, and RTX are also expected to play significant roles, according to sources familiar with those companies. Lockheed Martin has launched a webpage as part of its marketing efforts.

Numerous Bids

The Pentagon has received interest from over 180 companies eager to contribute to the development and construction of the Golden Dome, according to a US official. These include defense startups such as Epirus, Ursa Major, and Armada. Members of the White House’s National Security Council have been briefed by several companies on their capabilities, sources reported.

Steve Feinberg, the Pentagon’s second-in-command and former private equity investor, is expected to be a key decision-maker for Golden Dome, according to US defense officials.

Feinberg co-founded Cerberus Capital Management, which has invested in the hypersonic missile industry but not in SpaceX. Feinberg, who did not comment, has stated his intention to divest from Cerberus upon joining the administration.

Experts estimate that the overall cost of the Golden Dome could reach hundreds of billions of dollars. The Pentagon has established timelines for delivering capabilities, ranging from early 2026 to post-2030.

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

Grego stated that “such a system could be overwhelmed by launching multiple weapons simultaneously, requiring a massive defense system potentially involving tens of thousands of satellites.”

SpaceX is bidding for the “custody layer” of the Golden Dome initiative, which involves a constellation of satellites designed to detect missiles, track their trajectory, and determine if they are headed towards the US, according to sources.

SpaceX estimates that the preliminary engineering and design work for the custody layer of satellites would cost between $6 billion and $10 billion. In the past five years, SpaceX has launched numerous operational spy satellites and several prototypes that could be retrofitted for this project, sources indicated.

A Pentagon memo from Defense Secretary Peter Hegseth, reviewed, issued shortly before a February 28 deadline, requested initial Golden Dome proposals from senior Pentagon leadership and called for “acceleration of the deployment” of satellite constellations.

The timeline could benefit SpaceX due to its fleet of rockets, including the Falcon 9, and its existing satellites that could be repurposed for the missile defense shield.

Despite these advantages, some involved in the discussions are uncertain whether the SpaceX group can efficiently establish a cost-effective system with new technology to protect the United States from attack.

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 Democrats in Congress have expressed concerns about Musk’s bidding on federal contracts while serving in the White House.

US Senator Jeanne Shaheen (D-NH), a senior member of the Armed Services Committee, stated, “When the richest man in the world can become a Special Government Employee and exert influence over the flow of billions of dollars of taxpayer money in government contracts to his companies, that’s a serious problem.”

Shaheen has introduced legislation to prevent federal contracts from being awarded to companies owned by special government employees like Musk.

US Rep. Donald Beyer, D-Va, also voiced concerns about SpaceX’s role given Musk’s “inside access to non-public information and data.”

He said, “Any contracts awarded to him, or his companies, are suspicious.”