Elon Musk’s SpaceX Enters Pentagon’s $100 Million Drone Technology Race

TLDR

• Elon Musk’s SpaceX and xAI join Pentagon’s competition for autonomous drone technology
• Six-month contest offers $100 million to develop voice-command drone systems
• Competition launched January 2026, requires technology to control multiple drones simultaneously
• Musk signed 2015 letter opposing autonomous weapons before entering this contest
• SpaceX merged with xAI before planned IPO and competition announcement

SpaceX and its subsidiary xAI are competing in a Defense Department contest focused on autonomous drone systems. The program seeks voice-controlled technology capable of managing multiple drones at once.

The Pentagon introduced the $100 million competition in January 2026. Several companies received invitations to participate in the classified program.

Sources familiar with the contest confirmed SpaceX’s involvement. The Defense Innovation Unit has not publicly commented on the competition details.

The six-month challenge requires participants to build systems that convert spoken words into drone commands. These systems must operate multiple unmanned aircraft simultaneously through voice control.

SpaceX completed its purchase of xAI before joining the competition. The acquisition combined Musk’s aerospace company with his artificial intelligence venture.

The deal closed ahead of SpaceX’s planned stock market debut in 2026. SpaceX operates from Texas and maintains existing defense contracts.

Defense Department Accelerates Drone Programs

The Defense Secretary announced plans last year to expand drone capabilities. The strategy focuses on cutting red tape and boosting American drone production.

Military planners want faster deployment of unmanned aircraft technology. The approach aims to reduce development timelines for new drone systems.

Security officials are working to improve drone defense measures. Concerns have increased about unauthorized drones near airports and public gatherings.

The FIFA World Cup and America250 celebrations take place this summer. Authorities want enhanced drone security ready before these events begin.

Musk’s Changing Position on Military AI

Musk joined other technology experts in signing a 2015 open letter about autonomous weapons. The document called for international restrictions on AI-powered military systems.

The letter opposed creating automated tools designed for combat. Signers expressed worry about artificial intelligence in warfare applications.

SpaceX’s entry into the drone contest represents a departure from that stance. The company has maintained defense relationships for multiple years.

xAI was already a SpaceX subsidiary before the formal merger. The consolidation unified the companies under one corporate umbrella.

AI Firms Secure Pentagon Funding

Four major AI companies won Defense Department contracts in 2025. OpenAI, Google, Anthropic, and xAI each received agreements worth up to $200 million.

These contracts support AI integration across military operations. The Pentagon wants to scale advanced AI tools throughout its departments.

The agreements cover various artificial intelligence applications. Contract specifics remain confidential under defense procurement rules.

The drone competition runs separately from these existing contracts. Winners will receive portions of the $100 million prize pool.

Competition Technical Requirements

Participants must develop swarming technology for the contest. Systems need to process natural language and coordinate multiple drones.

The technology must interpret voice commands accurately. It then executes those instructions across a fleet of unmanned aircraft.

Companies have six months to build working prototypes. Evaluation methods and judging criteria have not been released publicly.

The competition aims to advance military drone capabilities through commercial innovation. Selected companies are developing their systems under strict confidentiality agreements.

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