WASHINGTON — Elon Musk’s SpaceX, in partnership with defense tech firms Palantir and Anduril, has emerged as the leading contender to secure a critical role in President Donald Trump’s high-priority “Golden Dome” missile defense initiative, according to multiple sources familiar with internal discussions.
The ambitious project, unveiled in a January executive order by President Trump, is designed to create a global missile detection and interception system to counter what he described as “the most catastrophic threat facing the United States.” The proposed “Golden Dome” would deploy hundreds—potentially thousands—of satellites to detect, track, and neutralize incoming threats from adversarial nations.
SpaceX’s role would focus on developing the “custody layer” — a constellation of surveillance satellites to identify and track missile launches in real time. According to two senior defense officials, preliminary engineering and design costs are estimated between $6 billion and $10 billion, and could leverage the company’s existing Starlink infrastructure and Falcon 9 launch capabilities.
In a novel approach, SpaceX has proposed a subscription-based model for its portion of the defense system, where the U.S. government pays for continued access rather than owning the technology outright. While this could fast-track deployment, Pentagon officials have expressed concern over long-term reliance on a private service for national defense. “This raises troubling questions about cost control and sovereignty,” one defense procurement official said.
Palantir and Anduril—also founded by major Trump donors Peter Thiel and Palmer Luckey, respectively—are expected to contribute advanced software for tracking and threat prediction, and AI-enabled drone systems for rapid response. The trio of companies has pitched a phased rollout beginning in 2026, with full operational capabilities targeted by 2030.
Adding to the controversy is Musk’s dual role as both head of SpaceX and a Special Government Employee serving as a senior adviser on cost-cutting measures within the Trump administration. Critics argue this presents a clear conflict of interest.
“When the richest man in the world is steering government policy and bidding for defense contracts simultaneously, that’s a red flag for democracy,” said Senator Jeanne Shaheen (D-NH), who has introduced legislation to block federal contracts to companies owned by active government advisors. Congressman Donald Beyer (D-VA) echoed these sentiments, citing Musk’s “unprecedented access to privileged national security information.”
SpaceX has declined to comment on whether Musk is directly involved in current negotiations. However, retired Air Force General Terrence O’Shaughnessy, a key SpaceX advisor, has reportedly played a central role in recent meetings with Pentagon and intelligence officials.
While the Pentagon continues to evaluate more than 180 competing proposals from both traditional defense contractors and startups, the technological readiness of SpaceX’s orbital assets gives the company a significant head start. An internal memo from Defense Secretary Peter Hegseth reviewed by Reuters urged military officials to “accelerate deployment” of satellite-based missile detection systems, potentially favoring companies already in orbit.
Still, experts warn the concept faces major hurdles. “It’s not just about launching satellites,” said Dr. Laura Grego of the Union of Concerned Scientists. “Such systems are prohibitively expensive, potentially vulnerable to saturation attacks, and raise serious concerns about escalation and militarization of space.”
As debates continue over the ethical implications, cost, and feasibility of the Golden Dome, one thing is clear: the project has become a flashpoint in the broader conversation about public-private partnerships, government ethics, and the future of space-based warfare.