SpaceX and the Golden Dome

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Elon Musk's SpaceX and two partners have emerged as frontrunners to win a crucial part of President Donald Trump's "Golden Dome" missile defense shield, six people familiar with the matter said.

Musk's rocket and satellite company is partnering with software maker Palantir (PLTR.O), opens new tab and drone builder Anduril on a bid to build key parts of Golden Dome, the sources said, which has drawn significant interest from the technology sector's burgeoning base of defense startups.

In his January 27 executive order, Trump cited a missile attack as "the most catastrophic threat facing the United States."

All three companies were founded by entrepreneurs who have been major political supporters of Trump. Musk has donated more than a quarter of a billion dollars to help elect Trump, and now serves as a special adviser to the president working to cut government spending through his Department of Government Efficiency.

Despite the Pentagon's positive signals to the SpaceX group, some sources stressed the decision process for Trump's Golden Dome is in its early stages. Its ultimate structure and who is selected to work on it could change dramatically in the coming months.

The three companies met with top officials in the Trump administration and the Pentagon in recent weeks to pitch their plan, which would build and launch 400 to more than 1,000 satellites circling the globe to sense missiles and track their movement, sources said.

A separate fleet of 200 attack satellites armed with missiles or lasers would then bring enemy missiles down, three of the sources said. The SpaceX group is not expected to be involved in the weaponization of satellites, these sources said.

One of the sources familiar with the talks described them as "a departure from the usual acquisition process. There's an attitude that the national security and defense community has to be sensitive and deferential to Elon Musk because of his role in the government."

In an unusual twist, SpaceX has proposed setting up its role in Golden Dome as a "subscription service" in which the government would pay for access to the technology, rather than own the system outright.

The subscription model, which has not been previously reported, could skirt some Pentagon procurement protocols allowing the system to be rolled out faster, the two sources said. While the approach would not violate any rules, the government may then be locked into a subscription and lose control over its ongoing development and pricing, they added.

Some Pentagon officials have expressed concerns internally about relying on the subscription-based model for any part of the Golden Dome, two sources told Reuters. Such an arrangement would be unusual for such a large and critical defense program.https://archive.is/iSNBe