Elon Musk’s company SpaceX, in collaboration with Peter Thiel’s Palantir and Palmer Luckey’s Anduril Industries, has reportedly emerged as the favorite to build a key satellite network for President Donald Trump’s ambitious “Golden Dome” missile defense system.
That’s according to a Reuters report citing six sources familiar with the discussions. This initiative originates from a January executive order where Trump established the policy for an “Iron Dome for America,” declaring missile attacks “the most catastrophic threat facing the United States.”
Shortly after the Reuters story appeared, Musk posted on X, disputing the claim with a simple “This is not true.” Earlier, however, Musk had told The Verge, “SpaceX has not tried to bid for any contract in this regard,” but added, “If the President asks us to help in this regard, we will do so, but I hope that other companies (not SpaceX) can do this.”
The system detailed in the Reuters report involves a proposed constellation of 400 to over 1,000 satellites specifically designed for sensing and tracking missile threats globally. This aligns with requirements in the January executive order, which mandated the Secretary of Defense deliver an architecture and implementation plan within 60 days (by late March 2025).
That plan needed to include accelerating the Hypersonic and Ballistic Tracking Space Sensor (HBTSS) layer and deploying a “custody layer” as part of the broader Proliferated Warfighter Space Architecture (PWSA). This custody layer, focused on continuous threat tracking, is reportedly the segment the SpaceX-led consortium is pursuing.
A separate fleet of about 200 attack satellites, potentially armed with missiles or lasers, was also mentioned in the proposal, although sources indicated the SpaceX group is not expected to handle weaponization. SpaceX’s estimated cost for the preliminary engineering and design of its custody layer contribution is pegged between $6 billion and $10 billion.
Subscription Model Raises Questions
In a notable departure from typical defense contracting, SpaceX has reportedly pitched its involvement as a “subscription service,” two sources informed Reuters. This arrangement would see the government paying ongoing fees for access to the satellite network’s capabilities instead of owning the hardware itself.
While this model could potentially accelerate deployment by circumventing some standard procurement procedures, it has reportedly generated unease within the Pentagon regarding the government’s long-term control over costs and system evolution for such a critical piece of national security infrastructure. Figures like U.S. Space Force General Michael Guetlein are reportedly involved in deciding the final ownership and operational setup.
An internal memo from Defense Secretary Peter Hegseth, issued before a late February deadline for initial Golden Dome proposals, also called for the “acceleration of the deployment” of satellite constellations, a timeline that could benefit SpaceX given its existing launch capabilities, like the Falcon 9 rocket, and experience building satellite networks, including operational spy satellites.
Silicon Valley Meets DC Power
The potential selection of this specific group – SpaceX, Palantir, and Anduril – brings political dimensions into focus. As Reuters noted, the founders of all three tech firms have been significant political supporters of President Trump. Elon Musk’s backing includes over $250 million in donations reported, and he currently serves as a special adviser to Trump on government efficiency.
This has led some involved in the process to suggest a shift in how contracts are being considered. One source told Reuters it was “a departure from the usual acquisition process. There’s an attitude that the national security and defense community has to be sensitive and deferential to Elon Musk because of his role in the government.”
Retired Air Force General Terrence O’Shaughnessy, a SpaceX advisor, is also reportedly involved in the company’s high-level defense discussions. Pentagon number two, Steve Feinberg, is anticipated to be a key decision-maker for the Golden Dome project.
These dynamics have prompted concerns about potential conflicts of interest from Democrats in Congress. Senator Jeanne Shaheen (D-NH) commented, “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,” highlighting legislation she introduced to address such overlaps.
Representative Donald Beyer (D-VA) also expressed reservations about Musk’s “inside access to non-public information and data,” concluding, “Any contracts awarded to him, or his companies, are suspicious.” SpaceX and Musk declined to comment on whether Musk was involved in discussions involving federal contracts for his companies.
Challenges And Competition
Despite the reported lead for the Musk-linked consortium, the Golden Dome initiative faces substantial hurdles. The total cost could escalate into the hundreds of billions, and the project has drawn proposals from over 180 companies, ranging from defense startups like Epirus, Ursa Major, and Armada to established giants like Northrop Grumman, Boeing, RTX, and Lockheed Martin.
The timeline itself presents challenges; while the executive order demanded rapid planning and initial capabilities are targeted for early 2026, some estimates suggest full implementation could take five to seven years.
Fundamental questions about the technical feasibility and strategic wisdom of such a large-scale space-based shield also remain. Laura Grego, research director at the Union of Concerned Scientists, described the concept to Reuters as a “bad idea, expensive and vulnerable.” She elaborated that “Such a system could be overwhelmed by launching multiple weapons at the same time, pushing the required size of the defense to very large numbers – potentially in the tens of thousands of satellites.”
There’s also underlying skepticism about the ability of newer tech firms to execute a project of this magnitude and national importance. “It remains to be seen whether SpaceX and these tech companies will be able to pull any of this off,” one source confided to Reuters. “They’ve never had to deliver on an entire system that the nation will need to rely on for its defense.”
