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Musk’s SpaceX is building spy satellite network for US intelligence agency, sources say
SpaceX is building a network of hundreds of spy satellites under a classified contract with a U.S. intelligence agency, five sources familiar with the program said, demonstrating deepening ties between billionaire entrepreneur Elon Musk’s space company and national security agencies.
The network is being built by SpaceX’s Starshield business unit under a $1.8 billion contract signed in 2021 with the National Reconnaissance Office (NRO), an intelligence agency that manages spy satellites, the sources said.
The plans show the extent of SpaceX’s involvement in U.S. intelligence and military projects and illustrate a deeper Pentagon investment into vast, low-Earth orbiting satellite systems aimed at supporting ground forces.
If successful, the sources said the program would significantly advance the ability of the U.S. government and military to quickly spot potential targets almost anywhere on the globe.
The contract signals growing trust by the intelligence establishment of a company whose owner has clashed with the Biden administration and sparked controversy, opens new tab over the use of Starlink satellite connectivity in the Ukraine war, the sources said.
The Wall Street Journal reported, opens new tab in February the existence of a $1.8 billion classified Starshield contract with an unknown intelligence agency without detailing the purposes of the program.
Reuters reporting discloses for the first time that the SpaceX contract is for a powerful new spy system with hundreds of satellites bearing Earth-imaging capabilities that can operate as a swarm in low orbits, and that the spy agency that Musk’s company is working with is the NRO.
Reuters was unable to determine when the new network of satellites would come online and could not establish what other companies are part of the program with their own contracts.
SpaceX, the world’s largest satellite operator, did not respond to several requests for comment about the contract, its role in it and details on satellite launches. The Pentagon referred a request for comment to the NRO and SpaceX.
In a statement the NRO acknowledged its mission to develop a sophisticated satellite system and its partnerships with other government agencies, companies, research institutions and nations, but declined to comment on Reuters’ findings about the extent of SpaceX’s involvement in the effort.
“The National Reconnaissance Office is developing the most capable, diverse, and resilient space-based intelligence, surveillance, and reconnaissance system the world has ever seen,” a spokesperson said.
The satellites can track targets on the ground and share that data with U.S. intelligence and military officials, the sources said. In principle, that would enable the U.S. government to quickly capture continuous imagery of activities on the ground nearly anywhere on the globe, aiding intelligence and military operations, they added.
Roughly a dozen prototypes have been launched since 2020, among other satellites on SpaceX’s Falcon 9 rockets, three of the sources said.
A U.S. government database of objects in orbit shows several SpaceX missions having deployed satellites that neither the company nor the government have ever acknowledged. Two sources confirmed those to be prototypes for the Starshield network.
All the sources asked to remain anonymous because they were not authorized to discuss the U.S. government program.
The Pentagon is already a big SpaceX customer, using its Falcon 9 rockets to launch military payloads into space. Starshield’s first prototype satellite, launched in 2020, was part of a separate, roughly $200 million contract that helped position SpaceX for the subsequent $1.8 billion award, one of the sources said.
The planned Starshield network is separate from Starlink, SpaceX’s growing commercial broadband constellation that has about 5,500 satellites in space to provide near-global internet to consumers, companies and government agencies.
The classified constellation of spy satellites represents one of the U.S. government’s most sought-after capabilities in space because it is designed to offer the most persistent, pervasive and rapid coverage of activities on Earth.
“No one can hide,” one of the sources said of the system’s potential capability, when describing the network’s reach.
Musk, also the founder and CEO of Tesla (TSLA.O), opens new tab and owner of social media company X, has driven innovation in space but has caused frustration among some officials in the Biden administration because of his past control of Starlink in Ukraine, where Kyiv’s military uses it for secure communications in the conflict with Russia. That authority over Starlink in a war zone by Musk, and not the U.S. military, created tension between him and the US government.
A series of Reuters’ stories has detailed how Musk’s manufacturing operations, including at SpaceX, have harmed consumers and workers.
The Starshield network is part of intensifying competition between the U.S. and its rivals to become the dominant military power in space, in part by expanding spy satellite systems away from bulky, expensive spacecraft at higher orbits. Instead a vast, low-orbiting network can provide quicker and near-constant imaging of the Earth.
China also plans to start building its own satellite constellations, and the Pentagon has warned of space weapon threats from Russia, which could be capable of disabling entire satellite networks.
Starshield aims to be more resilient to attacks from sophisticated space powers.
The network is also intended to greatly expand the U.S. government’s remote-sensing capabilities and will consist of large satellites with imaging sensors, as well as a greater number of relay satellites that pass the imaging data and other communications across the network using inter-satellite lasers, two of the sources said.
The NRO includes personnel from the U.S. Space Force and CIA and provides classified satellite imagery for the Pentagon and other intelligence agencies.
The spy satellites will house sensors provided by another company, three of the sources said.
President Joe Biden on Wednesday addressed the nation for the first time since dropping his reelection bid, saying he decided to forgo personal ambition to save democracy in a sedate Oval Office speech that contrasted with the rough-and-tumble campaign.
Shortly before his speech, Republican Donald Trump laid into Democratic rival Kamala Harris in his first rally since she replaced Biden atop the ticket, signalling a bare-knuckled campaign ahead of the Nov. 5 election.
Trump branded Harris a “radical left lunatic” after she had dominated the campaign the two previous days with withering attacks on Trump that pointedly raised his felony convictions, his liability for sexual abuse, and fraud judgments against his business, charitable foundation and private university.
Biden said he believed he deserved to be reelected based on his record during his first term, but his love of country led him to step aside.
“I decided the best way forward is to pass the torch to a new generation. That is the best way to unite our nation,” Biden said, after previously resisting calls from within the party that he quit the race following his poor showing in a June 27 debate with Trump.
Biden, at 81 the oldest president in U.S. history, was greeted by cheers, applause and music in the Rose Garden after the address, as his staff had converged on the White House for a viewing party.
Trump was less kind, saying in a post on his Truth Social platform that Biden’s speech was “barely understandable and sooo bad!”
After spending much of the campaign attacking Biden as old and feeble, Trump, 78, now faces a younger candidate in Harris, 59, the first Black woman and Asian American to serve as vice president.
Energising many Democrats as potentially the first woman to take the White House, Harris quickly consolidated the party behind her, as her campaign said it had raised $126 million since Sunday, with 64% of donors making their first contribution of the 2024 campaign.
With nobody stepping up to challenge her for the nomination, she won the backing of party delegates on Monday, a day after Biden’s announcement.
The next highly anticipated development will be Harris’ choice of a vice presidential candidate to counter Trump’s selection of Ohio Senator J.D. Vance. Among the names being mentioned are Kentucky Governor Andy Beshear and Transportation Secretary Pete Buttigieg.
The Democratic National Committee’s rules committee agreed on Wednesday on a plan to formally nominate Harris as soon as Aug. 1 – before the party’s Aug. 19-22 convention in Chicago – with Harris picking a running mate by Aug. 7.
Biden praised Harris as a strong leader who would make an effective president.
“She’s experienced, she’s tough, she’s capable. She’s been an incredible partner to me and a leader for our country. Now the choice is up to you the American people,” he said.
Trump tried to quash some of her momentum in an aggressive speech at a campaign rally.
“I’m not gonna be nice!” he told his cheering supporters in Charlotte, North Carolina, a battleground state where voting preferences can swing to either side.
Harris on Tuesday showed her willingness to throw a punch, contrasting her background as a prosecutor to his record as a convicted felon.
“Do we want to live in a country of freedom, compassion and rule of law, or a country of chaos, fear and hate?,” she asked during the speech in Milwaukee.
A Reuters/Ipsos poll completed on Tuesday showed Harris with a two-percentage-point lead over Trump, 44% to 42%. A CNN poll conducted by SSRS showed Trump leading Harris, 49% to 46%. Both findings were within the polls’ margins of error.
Donald Trump was shot in the right ear during a campaign rally on Saturday, sparking panic in the crowd and spattering the Republican presidential candidate’s blood across his face, before he emerged and pumped his fist in the air appearing to mouth the words “Fight! Fight! Fight!”
The shooter was dead, one rally attendee was killed and two other spectators were injured, the Secret Service said in a statement.
“I was shot with a bullet that pierced the upper part of my right ear,” Trump said on his Truth Social platform. “Much bleeding took place.”
As the shots rang out, Trump grabbed his right ear with his right hand, then brought his hand down to look at it before dropping to his knees behind the podium before Secret Service agents swarmed and covered him. He emerged about a minute later, his red “Make America Great Again” hat knocked off and could be heard saying “wait, wait,” before agents ushered him into a waiting vehicle.
The Secret Service and the former president’s campaign said Trump was safe following the shooting in Butler, Pennsylvania, about 30 miles (50 km) north of Pittsburgh.
The shooter’s identity and motive were not immediately clear. Leading Republicans and Democrats quickly condemned the violence.
The shots appeared to come from outside the area secured by the Secret Service, the agency said.
An audience member was also dead, and another person was in critical condition, a Washington Post reporter said on social media, citing the Butler County district attorney.
The shooting occurred less than four months before the Nov. 5 election, when Trump faces an election rematch with Democratic President Joe Biden.
“President Trump thanks law enforcement and first responders for their quick action during this heinous act. He is fine and is being checked out at a local medical facility. More details will follow,” spokesperson Steven Cheung said in a statement.
Trump had just started his speech when gunshots erupted and Trump and other rally attendees hit the deck. Secret Service agents swarmed around him and Trump disappeared behind the podium for about one minute before he was rushed to the waiting vehicle.
Trump and Biden are locked in a close election rematch, with most opinion polls including those by Reuters/Ipsos showing the two evenly matched.
Biden said in a statement: “There’s no place for this kind of violence in America. We must unite as one nation to condemn it.”
Ron Moose, a Trump supporter who was in the crowd, described the chaos: “I heard about four shots and I saw the crowd go down and then Trump ducked also real quick. Then the Secret Service all jumped and protected him as soon as they could. We are talking within a second they were all protecting him.”
Moose said he then saw a man running and being chased by officers in military uniforms. He said he heard additional shots, but was unsure who fired them. He noted that by then snipers had set up on the roof of a warehouse behind the stage.
The BBC interviewed a man who described himself as an eyewitness, saying he saw a man armed with a rifle crawling up a roof near the event. The person, who the BBC did not identify, said he and the people he was with started pointing at the man, trying to alert security.
“I am thinking to myself, why is Trump still speaking. Why have they not pulled him off stage,” said the man, who was wearing a red Trump hat. “Next thing you know, five shots rang out.”
REPUBLICANS, DEMOCRATS DECRY VIOLENCE
Trump is due to receive his party’s formal nomination at the Republican National Convention, which kicks off in Milwaukee on Monday.
“This horrific act of political violence at a peaceful campaign rally has no place in this country and should be unanimously and forcefully condemned,” Republican House Speaker Mike Johnson said on social media.
Democratic Senate Majority Leader Chuck Schumer said he was horrified by what happened and was relieved Trump was safe. “Political violence has no place in our country,” he said.
A Secret Service spokesperson said on social media: “The Secret Service has implemented protective measures and the former president is safe … This is now an active Secret Service investigation and further information will be released when available.”
CNN reported that Trump was injured, but gave no other details. It was not clear how or what injuries he may have sustained.
The venue was abandoned with chairs knocked over and yellow police tape around the stage. A helicopter flew above and law enforcement officers walked through the area, the video feed showed. Armed law enforcement officers were also seen on a roof near the stage where Trump was standing.
Biden’s campaign was working to pause its television ads and halting all other outbound communication, a campaign official said on Saturday.
Trump, who served as president from 2017-2021, easily bested his rivals for the Republican nomination early in the campaign and has largely unified around him the party that had briefly wavered in support after his supporters attacked the U.S. Capitol on Jan. 6, 2021, attempting to overturn his 2020 election defeat.
The businessman and former reality television star entered the year facing a raft of legal worries, including four separate criminal prosecutions. He was found guilty in late May of trying to cover up hush money payments to a porn star, but the other three prosecutions he faces — including two for his attempts to overturn his defeat — have been ground to a halt by various factors including a Supreme Court decision early this month that found him to be partly immune to prosecution.
Biden spoke to Trump after rally shooting: White House
US President Joe Biden has spoken to his election rival Donald Trump, a White House official said, after the Republican was injured in an apparent assassination attempt at a campaign event in Pennsylvania.
“This evening, President Biden spoke to former President Trump,” the official said, adding that the US incumbent would receive an updated briefing from law enforcement officials on the incident on Sunday morning.
Asian stocks on Thursday tagged along with a Wall Street rally that saw another round of record highs as bets on a September interest rate hike surged following comments by Federal Reserve boss Jerome Powell.
The advances also saw Hong Kong and Shanghai push higher after struggling in recent weeks over worries about the Chinese economy, with investors awaiting a key Communist Party meeting next week.
On a second day of testimony to lawmakers, Powell said decision-makers would not wait until inflation had hit the bank’s two percent target before loosening monetary policy, adding: “If you waited that long, you’ve probably waited too long.”
His remarks came before the release of the latest consumer price index reading on Thursday, which is expected to show a further slowdown.
Traders ramped up bets on the Fed reducing borrowing costs in two months’ time, with analysts saying Powell was telegraphing to markets that the decision had been made.
The comments soothed recent fears among investors that officials might keep rates at their two-decade high for some time owing to a still strong labour market and inflation staying stubbornly above two percent.
The S&P 500 ended with a sixth straight record, while the Nasdaq also finished at an all-time peak.
And the upbeat mood filtered through to Asia, where Hong Kong jumped more than one percent, while Tokyo, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei, Manila and Wellington also rose.
Eyes are also turning to the start of China’s Third Plenum gathering on Monday, where top officials including President Xi Jinping are expected to discuss ways to kickstart the world’s number two economy in the face of an ongoing property crisis and geopolitical issues.
However, while there is hope for some sort of major policy announcement, commentators remain cautious.
Andrew Batson, of Beijing-based consultancy Gavekal Dragonomics, told AFP he did not expect a “fundamental departure from the course Xi has already laid out”, in which technological self-sufficiency and national security outweigh economic growth.
Nomura’s Ting Lu added that the meeting was “intended to generate and discuss big, long-term ideas and structural reforms instead of making short-term policy adjustments”.
Economic growth in the first quarter of the year came in above forecasts and is tipped to top the government’s five percent goal for April-June, but the meeting comes amid ongoing concerns that officials are not providing enough support.
Taylor Nugent at National Australia Bank warned: “Further monetary policy easing is constrained by a reluctance to allow further depreciation in the renminbi, and expectations are low for any big policy shift at the Third Plenum.”
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.8 percent at 42,179.84 (break)
Hong Kong – Hang Seng Index: UP 1.3 percent at 17,697.76
Shanghai – Composite: UP 0.8 percent at 2,962.89
Euro/dollar: UP at $1.0840 from $1.0833 on Wednesday
Pound/dollar: UP at $1.2862 from $1.2848
Dollar/yen: DOWN at 161.58 yen from 161.71 yen
Euro/pound: DOWN at 84.27 pence from 84.29 pence
West Texas Intermediate: UP 0.8 percent at $82.79 per barrel
Brent North Sea Crude: UP 0.9 percent at $85.81 per barrel
New York – Dow: UP 1.1 percent at 39,721.36 (close)
London – FTSE 100: UP 0.7 percent at 8,193.51 (close)
