The next big venture: What is the Golden Dome that reports say Elon Musk is building for Donald Trump? Here's how much it will cost and what the Tesla CEO is saying
What is Donald Trump's Golden Dome and why is it making headlines?
Is Elon Musk's SpaceX really joining Trump's Golden Dome project?
Live Events
'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.'
What would the Golden Dome actually do and how much would it cost?
Hypersonic and Ballistic Tracking Space Sensor (HBTSS)
Proliferated Warfighter Space Architecture (PWSA)
Why is the global defense market booming right now?
Russia's invasion of Ukraine
Tensions in Asia, especially around China and North Korea
Middle East instability
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.
Could this be Elon Musk's next big business venture?
What's next for Trump's Golden Dome project?
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
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. 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. The Golden Dome would include hundreds, potentially thousands, of satellites in low Earth orbit, advanced radar systems, orbital interceptors, and maybe even futuristic tech likeThe big question buzzing around headlines: Is SpaceX getting involved in Trump's Golden Dome?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: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.If built, thewould work by tracking enemy missiles during their, the few moments after a missile is launched. This is the most vulnerable time to stop it.To do this, the system would need aconstantly orbiting the Earth, along with advanced ground stations and control systems. It would also depend on programs like:Trump's defense team believes this could cost, depending on how advanced and expansive the system becomes. The project is still in its, and no contracts have been publicly awarded yet.Interestingly, reports suggest the model could work like a—where the government pays for access to private satellite data instead of owning the entire system outright.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:In 2024 alone: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.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.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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
40 minutes ago
- Time of India
‘Large-scale fines will be imposed': Trump's fierce warning to California over transgender athlete wins - The Economic Times Video
US President Donald Trump vows hefty fines on California after a transgender athlete wins two high school track championships, sparking national controversy. Trump threatened 'large scale' fines following the transgender teen's participation in a California state track final. He previously warned Gov. Gavin Newsom that federal funding could be withheld if the state ignored his executive order signed on his first day in office. The US Department of Justice has warned California schools they may face legal action for allowing transgender athletes to compete, citing violations of the Equal Protection Clause. Assistant Attorney General Harmeet K. Dhillon called the policy unconstitutional, arguing it disadvantages female athletes. This follows Trump's executive order to cut federal funding to schools that allow trans girls to compete in women's sports, reaffirming his administration's stance to protect women's athletics.
Time of India
40 minutes ago
- Time of India
‘These acts qualify as terrorism': Leavitt blasts anti-semitic violence across US - The Economic Times Video
White House Press Secretary Karoline Leavitt confirmed that President Trump considers recent anti-Semitic violence, including the Boulder attack and arson at the Pennsylvania governor's mansion, as domestic terrorism. Leavitt stated the administration has taken historic action to combat anti-Semitic threats and will continue exploring new policy measures. She assured Jewish Americans that the President stands firmly with them and condemns all forms of terrorism and hate.
India Today
42 minutes ago
- India Today
US proposes interim deal allowing Iran to enrich uranium: Report
The United States has proposed an interim nuclear deal that would permit Iran to carry out low-level uranium enrichment as part of ongoing nuclear negotiations, according to a report by The New York Times on unnamed Iranian and European officials, the report states that the plan -- put forth by the administration of US President Donald Trump -- aims to serve as a temporary measure while a more comprehensive agreement is worked out with global powers to prevent Iran from developing a nuclear proposal, reportedly drafted by the Trump administration's special envoy to the Middle East, Steve Witkoff, has been shared with Iranian DEAL WITH STRICT CONDITIONS The idea behind the plan is to serve as a "bridge" between Iran's current nuclear activity and the US demand for Iran to pause all to the report, Iran would be allowed to enrich uranium at low levels, which would be enough to power nuclear energy plants, but not enough to build a return, the US would help Iran to build nuclear reactors and propose the creation of enrichment facilities managed by a group of regional countries. Iran is expected to cease all enrichment activities on its own territory as soon as it begins to reap any benefits from this of the main concerns is still the enrichment facility's location. Iranian officials are pushing for it to be built on Iranian territory, like the Kish or Qeshm islands, but the US insists that it must be outside of Iran. Since these areas are more visible, it might be simpler for foreign observers to keep an eye on them.A US official told The New York Times, "Out of respect for the ongoing deal, the administration will not comment on details of the proposal to the media."Iran has not officially responded to the proposal yet, but its Foreign Minister Abbas Araghchi made it clear on Tuesday that Tehran would not accept any deal that limits its right to enrich uranium. "We do not need anyone's permission to enrich uranium," Araghchi said. "Without respecting our right to enrichment, there will be no agreement."Must Watch
