Elon Musk’s SpaceX and AI subsidiary xAI are reportedly participating in a classified Pentagon contest aimed at creating advanced drone swarming technology. The six-month, $100 million challenge could revolutionize autonomous defense capabilities.

According to Bloomberg News, Musk’s companies were among a select few chosen to compete in the Pentagon’s new prize challenge, launched in January. The contest focuses on producing drone swarms that can respond to voice commands and execute coordinated missions autonomously.

SpaceX, xAI, and the Pentagon’s Defense Innovation Unit have not issued official statements, and Reuters could not independently verify the report.

Texas-based SpaceX recently acquired xAI, merging Musk’s aerospace and defense operations with his artificial intelligence start-up. This acquisition comes ahead of SpaceX’s planned initial public offering later this year.

The $100mln challenge

The Pentagon’s competition, valued at $100 million, is designed to accelerate research in autonomous drone technology. Competitors must demonstrate drones that can interpret voice commands, coordinate in real-time, and carry out complex tasks without human intervention.

The six-month contest is part of a broader U.S. strategy to boost domestic drone manufacturing and reduce bureaucratic delays in defense technology development.

Musk has previously advocated caution with autonomous weapons. In 2015, he co-signed an open letter with AI and robotics experts urging a global ban on offensive autonomous weapons, warning against creating “new tools for killing people.”

This participation marks a notable development, reflecting the evolving balance between AI innovation and defense applications in Musk’s ventures.

Broader US defense context

The U.S. is also exploring safe and cost-effective measures to counter drones, especially near airports and during high-profile events like the FIFA World Cup and America250 anniversary celebrations.

Other AI and robotics firms, including OpenAI, Alphabet’s Google, and Anthropic, won Pentagon contracts last year worth up to $200 million each, aimed at integrating advanced AI capabilities into defense operations.