Tech

SpaceX inked $1.8 billion deal with US intelligence agency to create a network of spy satellites, report says

Elon Musk during a SpaceX news conference
SpaceX in 2021 signed a $1.8 billion deal to create a network of spy satellites for a US intelligence agency, according to new reporting by Reuters. AP
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SpaceX's substantial ties to US national security are deeper than previously known, according to a new Reuters report.

The astronautics company inked a $1.8 billion deal in 2021 with an American intelligence agency to create a network of spy satellites, the outlet reported, citing five sources familiar with the terms of the program.

The satellite network is being built in partnership with the National Reconnaissance Office (NRO), the agency that manages spy satellites, and when complete is intended to offer the US military and intelligence agencies enhanced capabilities to identify targets worldwide, Reuters reported.

"The National Reconnaissance Office is developing the most capable, diverse, and resilient space-based intelligence, surveillance, and reconnaissance system the world has ever seen," a spokesperson for the agency told Reuters.

One source familiar with the program told Reuters the system's capabilities will make it so "no one can hide."

The Wall Street Journal in February reported on the existence of SpaceX's $1.8 billion contract with an intelligence agency but did not detail the terms of the deal.

Representatives for SpaceX did not immediately respond to a request for comment from Business Insider.

SpaceX's ties to US national security forces have been long documented. But the Reuters report sheds new light on the depths of the company's connections to American intelligence and military powers.

In 2022, the astronautics company led by Elon Musk debuted its "Starshield" satellites, designed specifically for government use, with a higher level of data security and end-to-end encryption.

The company has also provided satellite connectivity for military forces in Ukraine, and US officials have pressured SpaceX to provide services for military forces in Taiwan.

Musk's power and growing influence in the national security space have drawn scrutiny from critics who argue his erratic and unpredictable behavior, as well as his alleged drug use, make his companies high risk for US intelligence to invest in.

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Katherine (Tangalakis-Lippert) Ortiz
Katherine (Tangalakis-Lippert) Ortiz was a senior reporter on Business Insider's West Coast team. For four and a half years, her coverage spanned topics and industries, including chasing breaking news — such as the assassination attempts against President Donald Trump, and major legal actions against companies like Google, Anthropic, and OpenAI — as well as producing scoops about the Supreme Court, Starbucks, and many more. Katherine has worked on award-nominated projects and has appeared on Good Morning America, NBC, CNN, and other outlets to discuss her reporting.Prior to joining Business Insider, she covered retail, hospitality, and nonprofits at the San Fernando Valley Business Journal and received a master's degree in investigative reporting from the University of Southern California.Reach outDo you have feedback or a story tip? Contact Katherine on Signal at byktl.50, or follow her on Twitter and Instagram @scrawlgirl.Some of the highlights from her time at Business Insider include: Starbucks set up a new office. It's a 5-minute drive from the CEO's California home.Inside Starbucks' crackdown on cup notesEndless Shrimp was Red Lobster's rock bottom. Now it's clawing back.Clarence Thomas raised him 'as a son.' Now he's facing 25-plus years on weapons and drug charges.Call her Ivanka Kushner'Maybe I'll just resign:' Federal workers react to DOGE productivity emailSpaceX launches cause late-night booms that rattle windows, set off car alarms, and may damage property. Locals are pushing back.The US-China tech race is moving from chips to the raw materials they're made of