Elon Musk’s SpaceX and tech partners Palantir and Anduril have emerged as frontrunners in a high-stakes competition to build key components of President Donald Trump’s ambitious Golden Dome missile defense shield.
Six sources familiar with the matter said the trio presented a joint bid that could transform U.S. defense infrastructure. Their proposal includes building and launching a constellation of 400 to 1,000 satellites to track and detect missile threats. A second fleet of 200 armed satellites could later be deployed to intercept and neutralize incoming missiles.
In a January 27 executive order, Trump labeled missile attacks as “the most catastrophic threat facing the United States.” The Golden Dome program is now central to his national security agenda.
All three firms were founded by major Trump supporters. Musk alone has donated over $250 million to help re-elect Trump and now serves as a special presidential adviser overseeing government efficiency.
The SpaceX-led group recently met with top officials in the White House and Pentagon to pitch their plan. While the Pentagon appears optimistic, sources caution that final decisions remain far off. The ultimate scope, structure, and selection of contractors may change in the coming months.
One insider described the process as “a departure from normal acquisition norms,” adding that defense officials feel pressured to accommodate Musk because of his expanding government influence.
Subscription Model Raises Eyebrows
SpaceX proposed an unusual model: a subscription-based system where the U.S. government would pay for access to technology rather than owning the infrastructure outright. The approach, though technically compliant, could speed up deployment by bypassing traditional procurement hurdles.
However, some Pentagon officials voiced concerns. A subscription system could lock the government into long-term costs while limiting control over future development and pricing.
U.S. Space Force General Michael Guetlein has been involved in ongoing discussions about whether SpaceX should build, own, and operate its section of the system. Other scenarios include government ownership with private-sector operations.
A Potential Win for Silicon Valley
If the SpaceX alliance secures the contract, it would mark the largest defense industry win for Silicon Valley. It would also deal a blow to traditional defense contractors like Lockheed Martin, Boeing, RTX, and Northrop Grumman.
While those companies are also competing, they face stiff competition from this new generation of defense tech players. Lockheed Martin has already launched a marketing campaign to promote its own bid.
The Pentagon reportedly received proposals from over 180 firms. The White House National Security Council has been briefed on offerings from several startups, including Epirus, Ursa Major, and Armada.
Steve Feinberg, Deputy Secretary of Defense and co-founder of Cerberus Capital, will play a key role in selecting the winning bids. Feinberg, who has invested in hypersonic missile ventures but not SpaceX, pledged to divest personal interests when he entered government.
SpaceX Eyes “Custody Layer”
SpaceX is focused on what the Pentagon calls the “custody layer.” This component would monitor global missile activity and determine if threats target the United States.
Sources estimate that early engineering and design work for this satellite layer could cost between $6 billion and $10 billion. SpaceX already launched hundreds of operational spy satellites and prototypes in recent years, many of which could be retrofitted for Golden Dome.
Defense Secretary Peter Hegseth issued a memo before the February 28 deadline calling for “acceleration of deployment” for satellite constellations. That directive may give SpaceX a lead, given its reusable Falcon 9 rocket fleet and existing satellite infrastructure.
Despite these advantages, some insiders remain cautious. They question whether SpaceX and its partners can deliver a secure, reliable, and cost-effective national missile shield.
“It remains to be seen whether SpaceX and these tech companies will be able to pull any of this off,” said one source. “They’ve never had to deliver an entire defense system the country must rely on.”
