Just months after returning to the White House, President Donald Trump announced one of the most ambitious defense programs in U.S. history—the “Golden Dome.” And now, the buzz is around whether tech billionaire Elon Musk is joining this $2.5 trillion venture, raising the stakes in what’s already a booming defense market.While Trump envisions a massive space-based missile shield, recent reports hint at SpaceX, Musk’s rocket company, playing a major role. But is he actually in, or is it all speculation? Let’s break it down in simple terms—what the Golden Dome is, how much it could cost, who’s involved, and whether Musk is making a move into the trillion-dollar defense industry.

On January 27, 2025, just days after returning to office, President Trump signed an executive order calling for the development of a massive space-based missile defense program—officially named the Golden Dome. The idea? To build a protective shield that can detect and destroy incoming threats like ballistic missiles, hypersonic weapons, and advanced cruise missiles before they reach U.S. soil.

According to the order, Trump wants this system to cover threats from “peer, near-peer, and rogue adversaries”—understood to mean Russia, China, North Korea, and Iran. The Golden Dome would include hundreds, potentially thousands, of satellites in low Earth orbit, advanced radar systems, orbital interceptors, and maybe even futuristic tech like directed energy weapons.

According to Reuters, Musk’s company SpaceX is reportedly teaming up with Palantir (data software firm) and Anduril (a defense startup focused on drones and AI-based security systems) to design key components for the defense system.This trio reportedly plans to deploy 400 to 1,000 satellites to track missile activity around the world. While some satellites will simply track and monitor, others could potentially carry weapons to intercept hostile missiles. But Musk says something else.

In a post on X (formerly Twitter), Musk denied these claims, saying:

“SpaceX has not tried to bid for any contract in this regard. Our strong preference would be to stay focused on taking humanity to Mars. If the President asks us to help in this regard, we will do so, but I hope that other companies (not SpaceX) can do this.”

So, while SpaceX might be technically capable of building part of the infrastructure—like the satellite tracking layer—Musk hasn’t confirmed any formal involvement as of now.

What would the Golden Dome actually do and how much would it cost?

If built, the Golden Dome would work by tracking enemy missiles during their boost phase, the few moments after a missile is launched. This is the most vulnerable time to stop it.To do this, the system would need a high-tech web of satellites constantly orbiting the Earth, along with advanced ground stations and control systems. It would also depend on programs like:

• Hypersonic and Ballistic Tracking Space Sensor (HBTSS)
• Proliferated Warfighter Space Architecture (PWSA)

Trump’s defense team believes this could cost as much as $2.5 trillion, depending on how advanced and expansive the system becomes. The project is still in its early planning phase, and no contracts have been publicly awarded yet.Interestingly, reports suggest the model could work like a subscription service—where the government pays for access to private satellite data instead of owning the entire system outright.

Why is the global defense market booming right now?

This isn’t happening in a vacuum. Global military spending hit a record high of $2.46 trillion in 2024, according to the Stockholm International Peace Research Institute (SIPRI). This surge is being driven by several factors:

• Russia’s invasion of Ukraine
• Tensions in Asia, especially around China and North Korea
• Middle East instability

In 2024 alone:

• Europe’s defense spending rose 11.7%, reaching $457 billion.
• Asia-Pacific nations like Japan, India, South Korea, and Australia all increased their defense budgets significantly.
• The United States allocated $832.3 billion for defense in its 2025 budget.
• China’s defense spending reached $246 billion, up 7.2%.
• Japan approved $55.1 billion, up 9.4%.
• India’s defense budget grew to $78.57 billion, marking a 9.5% rise.

Trump has also asked NATO allies to spend at least 5% of their GDP on defense, which is pushing Europe toward even more spending, including a massive €800 billion ReArm Europe Plan led by European Commission President Ursula von der Leyen.

Could this be Elon Musk’s next big business venture?

Even though Musk has denied direct involvement, the defense market is clearly attractive. His companies already dominate in electric vehicles (Tesla) and space transportation (SpaceX). Moving into military and defense tech seems like a logical next step—especially as the U.S. and its allies pour trillions into new security technologies.His ties to Trump are also no secret. Musk has reportedly donated more than $250 million to Trump’s campaign and is now serving as a special adviser in the Department of Government Efficiency.

Even if SpaceX doesn’t build weapons, it may still play a major role in missile tracking, satellite launches, and infrastructure for U.S. military systems. And with private defense contracts now more lucrative than ever, that could turn into a multi-billion-dollar stream for Musk’s empire.

What’s next for Trump’s Golden Dome project?

Right now, the Golden Dome is still in its early planning stage. The Pentagon has been asked to deliver architectural plans within 60 days of the January 27 order, and insiders say companies like SpaceX, Palantir, and Anduril are seen as top contenders for building parts of it.However, there’s a lot still undecided—how it’ll be structured, which companies will be selected, and how it’ll be funded. The Biden administration had previously scaled back some space-defense ambitions, but under Trump, the focus has shifted back toward space dominance.