SpaceX as a Strategic Contractor: New Pentagon Contract Elevates AI Application Capabilities in the Defense Sector

On May 26, 2026, the U.S. Space Force awarded SpaceX a $2.29 billion contract to build the Space Data Network Backbone, a secure satellite data-transmission network among military systems designed to connect satellites, sensors, command centers, aircraft, ships, and strike platforms into a single decision-making system. 

Continuous data exchange within this network will also generate datasets for training machine-learning models for the purposes of network-centric warfare.

The network is meant to provide near-instant transmission of data from the battlefield to a platform capable of delivering a strike or changing an operational action. SpaceX received this contract because of its infrastructure and production readiness, which the state cannot quickly recreate on its own.