Elon Musk claims the US military used SpaceX's commercial Starlink service on suicide drones in Iran, violating the company's terms of service. He blamed the defense contractor Spektreworks for incorrectly configuring the drones.
The drones, part of the Low-cost Uncrewed Combat Attack System (LUCAS), should have used Starshield, a separate network for government use. Musk stated, "They made improper use of the Starlink civilian system for military purposes. Direct violation of terms of service."
A Reuters report claimed SpaceX asked the Pentagon to pay $25,000 per drone for Starshield access, up from $5,000. The Pentagon initially objected but ultimately agreed. Pentagon officials expressed concern over the pricing, with Deputy Secretary of Defense Steve Feinberg reportedly uneasy. SpaceX's defense business is led by retired Air Force General Terrence O'Shaughnessy.
The dispute extends to potential new deals, with the Pentagon considering purchasing over 3,500 Starshield terminal subscriptions, which could generate hundreds of millions in annual revenue for SpaceX.
SpaceX has also proposed charging up to $500 million to launch direct-to-cell service in Iran, plus a $100 million monthly fee, alarming defense officials. This follows past disputes over Starlink service in Ukraine.
Despite the tensions, Pentagon spokesperson Sean Parnell called SpaceX a "strong and valued partner." The Pentagon stated it is actively seeking alternative satellite communications providers.