Musk’s SpaceX close to a major U.S. missile defense contract

Elon Musk’s SpaceX and two partners have emerged as frontrunners to secure a crucial part of the missile defense shield “Golden Dome” pushed by U.S. President Donald Trump, according to six people familiar with the matter who spoke to the British agency Reuters.

Musk’s aerospace company, sources said, is collaborating with software maker Palantir and drone manufacturer Anduril to build key components of the Golden Dome, which has attracted significant interest from the growing base of defense-tech startups. All three companies were founded by entrepreneurs who have been strong political supporters of Trump.

Despite positive signals from the Pentagon toward the SpaceX group, some sources emphasized that the decision-making process for Trump’s Golden Dome is still in its early stages. The final configuration and who will be selected to work on it could change significantly in the coming months.

In recent weeks, the three companies have met with senior Trump administration and Pentagon officials to present their plan, which envisions building and launching between 400 and 1,000 satellites orbiting the globe to detect and track missiles, the sources explained. A separate fleet of 200 attack satellites armed with missiles or lasers would shoot down enemy missiles. The SpaceX group is not expected to be involved in arming the satellites.

In his executive order of January 27, Trump cited a missile attack as “the most catastrophic threat facing the United States.” One source described the talks between the White House and the three companies as “a departure from normal procurement procedures. There’s a sense in the national security and defense community that they must be sensitive and deferential to Elon Musk due to his role in the government.”

According to a U.S. official, the Pentagon has received interest from over 180 companies eager to contribute to the development and construction of the Golden Dome, including defense startups such as Epirus, Ursa Major, and Armada. Members of the White House National Security Council have been briefed by some companies on their capabilities, four sources stated.

SpaceX and Musk declined to comment on whether Musk is involved in discussions or negotiations involving federal contracts with his companies. The Pentagon did not respond to Reuters’ detailed questions, only saying that it will “provide options to the president for his decision in line with the executive order and in accordance with White House guidance and timelines.” The White House, SpaceX, Palantir, and Anduril also did not respond to inquiries.

National Defense by Subscription
Unusually, SpaceX has proposed setting up its role in Golden Dome as a “subscription service” where the government would pay for access to the technology, rather than owning the system outright. The subscription model could bypass some of the Pentagon’s procurement protocols, enabling faster deployment of the system, two sources said. While the approach wouldn’t break any rules, the government could become tied to a subscription and lose control over its development and pricing, they added.

Some Pentagon officials have internally expressed concern about relying on the subscription model for any part of the Golden Dome, the two sources told Reuters. Such an arrangement would be unusual for a defense program so large and critical. Other options include full U.S. ownership and management of the system or operational management under U.S. control.

If the SpaceX-led group were to win a contract for the Golden Dome, it would mark the biggest victory for Silicon Valley in the lucrative defense contracting space—and a blow to traditional contractors. However, long-established players like Northrop Grumman, Boeing, and RTX are also expected to play a significant role in the process, according to people familiar with the companies. Lockheed Martin has created a webpage as part of its marketing efforts.

According to a U.S. official, the Pentagon has received interest from over 180 companies eager to contribute to the development and construction of the Golden Dome, including defense startups like Epirus, Ursa Major, and Armada. Members of the White House National Security Council have been briefed by some companies on their capabilities, four sources said. Some experts estimate that the total cost of Golden Dome could reach hundreds of billions of dollars.