SpaceX proposed a subscription model where the U.S. government would pay for access to the missile defense system's satellite services rather than owning the system outright. This approach could enable faster deployment by bypassing some traditional Pentagon procurement protocols but raises concerns about long-term costs and reduced government control over development and pricing.

SpaceX, Palantir, and Anduril are collaborating to develop the Golden Dome missile defense system, with SpaceX focusing on the 'custody layer' consisting of hundreds of low-Earth orbit satellites for missile detection and tracking. Palantir and Anduril are partners in the proposal, but the trio is not expected to handle the weaponization phase involving attack satellites.

The preliminary engineering and design work for the Golden Dome's satellite detection layer is estimated to cost between $6 billion and $10 billion.

Pentagon officials have expressed concerns that the subscription model could lock the government into ongoing costs and reduce its control over the development, operation, and pricing of the missile defense system. Additionally, there is debate over whether SpaceX should own and operate the satellites or if the U.S. government should retain ownership with contractors managing operations.

If the SpaceX-led consortium secures the Golden Dome contract, it could represent a significant shift in defense contracting toward technology and Silicon Valley firms, potentially dealing a setback to traditional defense giants such as Lockheed Martin, Boeing, Northrop Grumman, and RTX, who are also bidding for the project.