Elon Musk’s Defence Alliance Seeks Role in Satellite-Based Shield
SpaceX, led by Elon Musk, has emerged as a leading contender for a critical part of former President Donald Trump’s proposed “Golden Dome” missile defence shield. According to six sources familiar with the matter, SpaceX has teamed up with software firm Palantir and drone manufacturer Anduril to develop essential components of the initiative.
The plan centres around launching hundreds of satellites capable of detecting and tracking missile threats, alongside a separate fleet of attack satellites designed to neutralise them using missiles or laser systems. SpaceX’s role would be limited to the detection and tracking satellites—referred to as the “custody layer”—and not the weaponisation of space.
Trump described missile attacks as “the most catastrophic threat facing the United States” in a 27 January executive order. The defence sector has since seen growing interest from Silicon Valley startups aiming to modernise traditional military systems.
A New Procurement Model Raises Eyebrows
In a notable departure from standard defence contracts, SpaceX is proposing a “subscription service” model. Under this approach, the government would pay for access to the technology, rather than owning it outright. Sources said the model could accelerate rollout by bypassing some Pentagon procurement processes. However, internal concerns have been raised about long-term costs and the lack of government control over development and pricing.
US Space Force General Michael Guetlein has reportedly been involved in discussions to decide whether SpaceX should operate the system, or if the government should retain control. Alternatives include government ownership with outsourced operations.
Political Links and Strategic Advantage
All three companies in the bid—SpaceX, Palantir, and Anduril—were founded by entrepreneurs who have supported Trump politically. Musk, now a special adviser to the president, has donated over $250 million to pro-Trump causes and is tasked with cutting federal spending through the Department of Government Efficiency.
SpaceX’s advisory team includes retired Air Force General Terrence O’Shaughnessy, who has participated in recent briefings with senior defence and intelligence officials.
While the decision-making process is still in early stages, SpaceX’s extensive launch capabilities and existing satellite infrastructure could give it a head start. The company has already deployed hundreds of operational satellites and tested several prototypes that may be adapted for Golden Dome.
Traditional Contractors Still in the Race
Although SpaceX’s bid represents a significant push from the tech sector, traditional defence contractors such as Northrop Grumman, Boeing, RTX, and Lockheed Martin remain major contenders. Lockheed has even launched a dedicated webpage as part of its campaign.
The Pentagon has received interest from over 180 companies. High-level briefings have been delivered to the White House’s National Security Council by a selected group of firms.
Pentagon Deputy Secretary Steve Feinberg, a former private equity investor with ties to hypersonic missile development, will play a central role in the final decision. Feinberg has stated he will divest from his business interests while in office.
Billion-Dollar Stakes and Rapid Timelines
Internal Pentagon documents seen by Reuters suggest that initial capability milestones are set for 2026, with additional phases extending beyond 2030. The total cost of the Golden Dome project could run into hundreds of billions of dollars.
SpaceX estimates that the design and development of the custody layer could cost between $6 billion and $10 billion. Defence Secretary Peter Hegseth issued a memo in February urging rapid deployment of satellite constellations, a move that could favour SpaceX due to its existing assets and launch infrastructure.
Despite the group’s advantages, several defence officials remain sceptical about whether SpaceX and its partners can deliver a fully integrated missile defence system. One source noted, “They’ve never had to deliver an entire system the country must rely on for national security.”
with inputs from Reuters