Trump Cuts Ties with Elon Musk’s SpaceX on $175B Golden Dome Missile Defense Project, Opens Door for Amazon and Others

• Why Did Trump Drop SpaceX from the Golden Dome Project?
• Who Benefits from SpaceX’s Exit?
• How Fast Is the Pentagon Moving?
• What Are the Global Implications?
• FAQ: Golden Dome Shakeup

In a dramatic shift, former President Donald TRUMP has officially removed Elon Musk’s SpaceX from the $175 billion Golden Dome missile defense initiative, pivoting toward competitors like Amazon’s Project Kuiper and traditional defense contractors. The decision, stemming from a public fallout between Trump and Musk in June 2025, marks a rare opportunity for rivals to challenge SpaceX’s dominance in military space contracts. With the Pentagon accelerating timelines and Congress injecting billions, the battle for control of America’s next-gen missile shield is heating up—and the stakes couldn’t be higher.

Why Did Trump Drop SpaceX from the Golden Dome Project?

The rift between Trump and Musk escalated on June 5, 2025, when Musk criticized Trump’s spending policies and launched the "America Party" to counter Republican allies. Pentagon officials had already grown wary of SpaceX’s outsized role in military communications. "We need multiple vendors bidding per launch—this isn’t a one-company show," a WHITE House insider told Reuters. SpaceX maintains it faced no technical issues with Golden Dome, but Musk’s focus on Mars colonization ("Our priority is humanity’s interplanetary future") may have clashed with Trump’s urgency for terrestrial defense.

Who Benefits from SpaceX’s Exit?

Amazon’s Project Kuiper—with just 78 of its planned 3,000 satellites deployed—suddenly finds itself in the Pentagon’s spotlight. Jeff Bezos told Reuters in January 2025 that Kuiper’s low-Earth orbit network "will undoubtedly have defense applications," despite its commercial origins. Meanwhile, legacy players like Lockheed Martin and Northrop Grumman are pitching space-based interceptors, while startups (Rocket Lab, Stoke Space) scramble for footing. "We’re ready to support Golden Dome as a proven mission partner," declared Lockheed’s space division president Robert Lightfoot.

How Fast Is the Pentagon Moving?

Newly confirmed Space Force General Michael Guetlein has a brutal timeline: 30 days to assemble a team, 60 days for system design, and 120 days for a full satellite/ground infrastructure plan. The budget explosion speaks volumes—Space Force’s satellite comms funding leaped from $900 million to $13 billion in 2024, with a $25 billion tranche approved this year. "If you want impact within 2–3 years, Patriot missile systems will play significantly," hinted RTX executives, nodding to stopgap solutions.

What Are the Global Implications?

A functional space missile shield could trigger an arms race. Russia’s alleged 2024 cyberattacks on SpaceX (which Musk said required "significant resources" to thwart) hint at vulnerabilities. While Kuiper beefs up digital defenses, China and Russia may accelerate anti-satellite programs. "Golden Dome isn’t just about protection—it’s about deterrence," noted a BTCC market analyst. "But over-reliance on private firms brings new risks."

FAQ: Golden Dome Shakeup

Why did Trump remove SpaceX?

Political tensions and Pentagon concerns over SpaceX’s monopoly on military space contracts.

Which companies are replacing SpaceX?

Amazon’s Project Kuiper, Lockheed Martin, Northrop Grumman, and startups like Rocket Lab.

What’s the project’s budget?

$175 billion total, with $25 billion recently approved for initial phases.