Elon Musk’s aerospace firm, SpaceX, along with software company Palantir and drone manufacturer Anduril, is currently leading the race to develop a critical component of President Donald Trump’s proposed “Golden Dome” missile defense system, according to sources familiar with the project.
This high-profile defense initiative has garnered considerable interest from tech startups focused on national security. The partnership between SpaceX and its two allies aims to construct and deploy hundreds to potentially over a thousand satellites to monitor and track missile threats in real time.
President Trump, in a January 27 executive order, identified missile attacks as the top existential threat to the United States. The “Golden Dome” initiative is central to his administration’s push for a comprehensive space-based missile shield.
Notably, all three companies involved in the bid are led by entrepreneurs with strong political ties to Trump. Musk, in particular, has donated over $250 million to support Trump’s political ambitions and now holds an advisory position in the government, helping to streamline federal expenditures through the newly established Department of Government Efficiency.
Although Pentagon insiders have expressed optimism about the proposal from the SpaceX consortium, officials cautioned that the selection process remains in its early stages, and the project’s final configuration could change over time.
The consortium recently met with senior officials in both the administration and the Pentagon to outline a proposal involving a satellite constellation capable of detecting and tracking incoming missiles. Another fleet of around 200 satellites—equipped with missiles or lasers—would then neutralize identified threats. However, SpaceX is not expected to participate in arming the satellites, according to sources.
One source noted that the discussions mark a significant deviation from standard defense procurement procedures, suggesting that Musk’s dual role as a government adviser and industry leader has afforded him considerable influence.
Neither Musk nor SpaceX has publicly addressed whether he is directly involved in federal contract negotiations. When contacted, the Pentagon only confirmed that it is preparing options for the President as part of the executive order but did not elaborate further.
In a unique twist, SpaceX has proposed offering its satellite services via a “subscription model” instead of the government owning the system outright. This model could allow for faster implementation by bypassing traditional procurement hurdles, though some Pentagon officials have raised concerns about potential long-term risks such as pricing control and system oversight.
US Space Force General Michael Guetlein is reportedly involved in discussions on whether SpaceX should retain operational control over its segment of the system. Alternatives under consideration include government ownership with contractor-led operations or full government control.
Retired General Terrence O’Shaughnessy, now a senior advisor to Musk at SpaceX, is also said to be actively engaged in talks with top defense and intelligence figures.
If selected, the SpaceX consortium would secure one of the most significant defense contracts ever awarded to a Silicon Valley entity, signaling a major shift in the traditional defense industry landscape. Despite this, legacy defense contractors such as Boeing, Northrop Grumman, and RTX are expected to remain key players. Lockheed Martin has already launched a promotional campaign for its own proposal.
Over 180 companies have expressed interest in participating in the Golden Dome initiative, with several making direct pitches to the White House’s National Security Council. Steve Feinberg, a former private equity investor and now the second-ranking official at the Pentagon, is expected to play a pivotal role in selecting the winning proposals.
Estimates suggest the Golden Dome project could cost several hundred billion dollars, with the Pentagon targeting initial capabilities by 2026 and further developments extending beyond 2030.
Experts have questioned the feasibility and cost-effectiveness of the project. Laura Grego, a director at the Union of Concerned Scientists, argued that the concept could easily be overwhelmed by a large-scale missile barrage, requiring an impractically large number of satellites.
SpaceX is specifically vying to build the “custody layer” of the system—a network of satellites designed to detect and track missiles. Early estimates suggest the design and engineering costs alone for this layer could reach $6–10 billion. SpaceX may leverage its existing fleet of surveillance satellites and Falcon 9 rockets to speed up deployment.
A memo from Defense Secretary Peter Hegseth, reviewed by sources, urged accelerated deployment of satellite constellations and requested preliminary proposals by late February.
Although SpaceX’s existing infrastructure could give it a competitive edge, there are concerns about whether the company and its partners can deliver a fully operational, reliable defense system on such a large scale.
Some lawmakers, particularly Democrats, have raised ethical questions about Musk’s dual role as a government adviser and bidder for federal contracts. Senator Jeanne Shaheen has introduced legislation aimed at prohibiting companies owned by special government employees from receiving federal contracts. Representative Donald Beyer also voiced concerns about Musk’s unprecedented access to sensitive government information and its potential implications for contract awards.
