Reuters: Elon Musk's SpaceX wins contract for Donald Trump's 'Golden Dome' missile shield

Elon Musk is expanding his involvement in building the Golden Dome missile defense system, as his company SpaceX, in collaboration with Anduril and Palantir, have emerged as the dominant consortium to build key parts of the project, Reuters reports, citing six people with knowledge of the matter.

The plan, recently presented to senior officials from the Donald Trump administration and the Pentagon, envisages the launch of 400 to 1,000 satellites that will patrol the Earth to detect and track ballistic missiles. At the same time, the plan proposes the development of a separate fleet of 200 satellites that will carry missile or laser devices to counter threats. SpaceX, however, will not be involved in the part that deals with satellite devices.

The plan is based on an executive order signed on January 27 by Donald Trump, which says a missile attack would be "the greatest destructive threat to the United States."

Elon Musk's involvement in the "Golden Dome" consortium comes at a time when he remains the US president's special advisor on reducing government spending, while during the election campaign he donated over $250 million.

In its proposal to the US government, SpaceX suggests offering its technology as a “subscription service”. Under the proposal, the government would pay for access to the system without owning it. This model, which has never before been applied to a weapons program of this scale, could allow the Pentagon’s procurement procedures to be bypassed. At the same time, it could allow for the acceleration of procedures.

However, there are concerns about the issue. Some Pentagon officials have already expressed reservations about relying on private assistance in such a critical military sector. According to sources, US Space Force General Michael Gatlin is discussing the possibility of SpaceX owning and operating its own portion of the system, with alternative scenarios including government ownership and the possibility of contracting out the operation of the system.

Retired General Terrence O'Shaughnessy, a senior advisor to Musk, is said to have played an active role in SpaceX's recent contacts with the leadership of the armed forces and intelligence services.

The road to Silicon Valley opens

If the consortium wins the contract, it would be Silicon Valley's biggest foray into the arms sector. It would be a blow to traditional defense contractors such as Northrop Grumman, Boeing, RTX and Lockheed Martin, which are also participating in the process.

The Pentagon has already received proposals from over 180 companies, including startups like Epirus, Ursa Major, and Armada. The White House National Security Council has been briefed by selected companies on their technological capabilities.

Steve Feinberg, a former investor and co-founder of Cerberus Capital Management, is expected to play a central role in the decision-making process. Although he did not invest in SpaceX, he has said he will step down from his positions at Cerberus upon joining the new government.

SpaceX specifically claims the “surveillance layer” part of the Golden Dome. That means it will take over the part that has to do with space surveillance. In particular, it wants to send a large number of satellites into space that will detect when a rocket is launched, monitor its path, and report if it is about to strike the United States.

According to the publication, the cost for the initial design and preparation of the system is estimated to reach 6 to 10 billion dollars.

According to a memo from Defense Secretary Peter Hegseth reviewed by Reuters, Pentagon leaders were asked to submit initial proposals by February 28, with the aim of "accelerating the development" of satellite systems.

The schedule is considered favorable for SpaceX, thanks to its fleet of Falcon 9 rockets and satellites that can be adapted for the program.

However, questions are being raised about the consortium’s ability to deliver a fully functional system with new technology, in a financially viable context. As one of the sources said, “it remains to be seen whether SpaceX and these technology companies can pull this off. They have never had to deliver a system on which the defense of a nation depends.”

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