SpaceX Joins Pentagon’s $100 Million Race for AI-Powered Drone Swarms

TLDR

• SpaceX and xAI are competing in a Pentagon contest for voice-controlled autonomous drone swarming technology
• The competition offers $100 million in prizes and was launched in January 2026
• The six-month challenge aims to translate voice commands into digital instructions for operating multiple drones
• Musk previously signed a 2015 open letter advocating for a global ban on offensive autonomous weapons
• SpaceX recently acquired xAI ahead of its planned IPO this year

Elon Musk’s SpaceX and its subsidiary xAI are participating in a Pentagon competition focused on autonomous drone technology. The contest aims to develop voice-controlled systems capable of operating multiple drones simultaneously.

The Defense Department launched the $100 million prize challenge in January 2026. Multiple companies were selected to compete in the secretive program, according to sources familiar with the matter.

The competition runs for six months. Participants must create technology that converts spoken commands into digital instructions for drone operations.

SpaceX-xAI Merger Precedes Competition

SpaceX recently completed its acquisition of xAI. The deal combined Musk’s space and defense contractor with his artificial intelligence startup.

The merger happened before SpaceX’s scheduled initial public offering in 2026. The Texas-based company has been a defense contractor for several years.

xAI was previously a wholly-owned subsidiary of SpaceX. The formal acquisition consolidated the two entities under one corporate structure.

Past Stance on Autonomous Weapons

Musk signed an open letter in 2015 calling for restrictions on autonomous weapons. The letter, written by AI and robotics researchers, advocated for a global ban on offensive autonomous weapons.

The letter argued against creating new tools for killing people. Musk joined other technology leaders in expressing concerns about weaponized artificial intelligence.

His companies’ participation in the Pentagon contest marks a shift from that earlier position. SpaceX has worked with the Defense Department on various contracts over the years.

Pentagon Push for Drone Development

The Defense Secretary outlined a strategy last year to speed up drone development. The plan focuses on reducing bureaucracy and increasing domestic drone manufacturing.

The United States has been working to find safe methods to neutralize drones. Security concerns have grown around airports and large sporting events.

The FIFA World Cup and America250 anniversary celebrations are scheduled for summer 2026. Officials want improved drone defense capabilities before these events.

AI Companies Win Defense Contracts

OpenAI, Google, Anthropic, and xAI received Pentagon contracts last year. Each contract is worth up to $200 million.

These agreements aim to expand AI adoption within the Defense Department. The contracts focus on advanced AI capabilities for military applications.

The Defense Innovation Unit oversees these programs. The unit did not respond to requests for comment about the drone competition.

Competition Requirements

The contest requires participants to develop swarming technology. Systems must handle voice commands and control multiple drones at once.

The technology needs to process natural language input. It must then translate those commands into actions for drone operations.

Selected companies are working on prototypes during the six-month period. The competition structure and evaluation criteria have not been publicly disclosed.

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