SpaceX executives demanded higher payments from the Pentagon for using Starlink satellite Wi-Fi in U.S. kamikaze drones during the Iran war, according to documents and sources cited by Reuters. The company argued that the military was paying only $5,000 per terminal, while the actual value of the high-end service was closer to $25,000. The disagreement centered on the use of Starlink in Lucas suicide drones, which are similar to Iran’s Shahed models. As U.S. bombing intensified, the Pentagon ultimately agreed to pay the increased rates, nearly doubling the cost per drone.
The dispute reflects the Pentagon’s growing dependence on SpaceX for critical communications. SpaceX supplies a special military version of Starlink called Starshield, which connects to both commercial and secure satellite constellations. Elon Musk denied the Reuters report on X, calling it false, while Pentagon officials also disputed the claims without providing details. Analysts noted that SpaceX’s dominance in satellite communications gives it significant leverage over U.S. defense operations.
Pentagon documents indicate plans to purchase more than 3,500 additional Starshield terminals, which could further boost SpaceX’s revenue if finalized.
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