Elon Musk's SpaceX signs Pentagon deal for 'Starshield' satellite services

SpaceX, the aerospace company led by CEO Elon Musk, has secured its maiden contract with the Pentagon under its new ‘Starshield’ programme.

Musk, in a recent post on X (formerly Twitter), confirmed the collaboration with the US Space Force and clarified that the Starshield project would be “owned by the US government and controlled by [the Department of Defence].”

He underscored the importance of maintaining a clear distinction between civilian and military satellite services, stating, “Starlink needs to be a civilian network, not a participant in combat.” Musk also alluded to the use of satellites in the Ukraine-Russia conflict, expressing that this separation is the “right order of things.”

Despite Musk’s reluctance to directly engage in military activities, reports indicate that SpaceX will effectively lease a portion of its Starlink network to the Pentagon, delivering services through the same satellite infrastructure, as reported by Bloomberg.

This contract, subject to a $70 million price ceiling, encompasses “Starshield end-to-end service via the Starlink constellation, user terminals, ancillary equipment, network management and other related services,” according to Air Force spokeswoman Ann Stefanek, as quoted by Bloomberg News.

Bloomberg noted that SpaceX is now in contention for nearly $1 billion worth of Pentagon contracts, spanning until 2028, as the Space Force endeavours to repurpose existing communication satellites for military purposes under its “Proliferated Low Earth Orbit” initiative.

Musk has faced criticism from US officials concerning SpaceX’s actions during the Ukraine conflict. Allegations have arisen that SpaceX declined Kiev’s requests to utilise the Starlink network for operations against Russia’s Black Sea fleet last year. Walter Isaacson, Musk’s biographer, disclosed earlier this month that Musk had created a “military version of the Starlink” as an attempt to distance himself from such military involvement.

“I’ve talked to him during this whole thing, and late one night, he said, ‘Why am I in this war?’ He said, ‘I, you know, created Starlink so people could chill and watch Netflix movies and play video games. I did not mean to create something that might cause a nuclear war,’” Isaacson told the Washington Post.

Isaacson further explained that Musk “decided to sell and give total control over a certain amount of Starlink equipment… to the US military so that he no longer controls the geofencing,” alluding to geographic limitations that can be imposed on the satellite network.

Musk had previously stated that American sanctions on Russia prevented SpaceX from extending Starlink coverage into Crimea, emphasising that the company is “not actually allowed to turn on connectivity to… the country without explicit [US] government approval.” However, he also expressed his desire not to be “complicit in a major act of war and conflict escalation,” suggesting that the decision was influenced by more than just US restrictions.