Billionaire Elon Musk’s aerospace company SpaceX, along with software firm Palantir and drone manufacturer Anduril, is emerging as a leading contender to play a major role in US President Donald Trump’s ambitious missile defence project, called the “Golden Dome,” according to a Reuters report.
The Golden Dome is a large-scale defence initiative aimed at protecting the United States from missile attacks. In an executive order signed on January 27, President Trump described missile threats as “the most catastrophic danger facing the United States”.
Since then, the Pentagon has received interest from over 180 companies to contribute to the project.
SpaceX’s strategic role
SpaceX, which is well known for launching satellites and rockets, is expected to handle a key portion of the project — called the “custody layer”.
This part involves building and launching a constellation of 400 to 1,000 satellites that can detect, track, and monitor missiles in real time. The company has estimated that the initial engineering and design work for this satellite network would cost between USD 6 billion and USD 10 billion.
The satellites would not be weaponised by SpaceX. Instead, a separate group of around 200 satellites equipped with missiles or lasers would handle the task of intercepting and destroying incoming threats. These would be developed by other contractors, reports said.
Controversial subscription model
In a new and controversial proposal, SpaceX has suggested offering its services through a “subscription model”. Rather than the government owning the system outright, it would pay for continued access to the technology.
While this approach could allow faster rollout, it also raises concerns about long-term costs and government dependence on a private company.
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Some Pentagon officials are reportedly worried that such a model would limit their control over future upgrades and pricing.
Political connections and criticism
All three companies bidding together — SpaceX, Palantir, and Anduril — were founded by entrepreneurs who have supported Trump politically.
Elon Musk has donated over USD 250 million to Trump’s campaigns and now holds a special advisory role in the White House as the head of the Department of Government Efficiency (DOGE).
This dual role has raised eyebrows among lawmakers. US Senator Jeanne Shaheen has introduced a bill that would prevent companies owned by special government employees like Musk from receiving federal contracts.
Representative Donald Beyer also expressed concern about Musk’s access to sensitive, non-public government information, calling any contract awarded to his companies “suspicious”.
Despite these concerns, SpaceX has already proven its capabilities by launching hundreds of operational satellites, many of which can potentially be retrofitted for the Golden Dome system. The company also has a major logistical advantage due to its fleet of rockets, including the reusable Falcon 9.
Falcon 9 completes the first 27th launch and landing of a booster and delivers 27 @Starlink satellites to the constellation from Florida pic.twitter.com/2TLtxDqV6j
— SpaceX (@SpaceX) April 14, 2025
Pentagon’s response
The US Department of Defense has acknowledged that many proposals have been submitted, but stressed that the process is still in its early stages. It is expected that the final structure of the Golden Dome and the companies involved could change in the coming months.
Some experts are sceptical about the feasibility of such a massive satellite-based defence system. Laura Grego, a scientist at the Union of Concerned Scientists, pointed out that the system could be overwhelmed if many missiles are launched simultaneously, requiring tens of thousands of satellites to function effectively.
Still, the Trump administration appears determined to move quickly. An internal Pentagon memo reviewed by Reuters indicates that the first phase of Golden Dome could begin as early as 2026, with full deployment by 2030 or beyond.
If SpaceX and its partners win a significant contract, it would mark a major shift in the U.S. defence industry — giving Silicon Valley startups a major role in an area traditionally dominated by legacy defence giants like Boeing, Lockheed Martin, and Northrop Grumman.
For now, both the White House and SpaceX have declined to comment. Elon Musk, however, responded briefly on his social media platform X, saying simply: “This is not true.”
