Musk says US military suicide drones used Starlink in violation of SpaceX rules

The Pentagon “denied any violation of its agreement with SpaceX,” according to Reuters. Starshield terminals sold by SpaceX to the military can connect both to the commercial Starlink satellite constellation and Starshield, the Reuters article said. The drones in question are part of the Low-cost Uncrewed Combat Attack System (LUCAS), which was made by defense contractor Spektreworks. We contacted Spektreworks today and will update this article if it responds. Musk previously addressed the military use of SpaceX satellite terminals on drones on March 1, one day after the Iran war began, in response to an X post in which a user posted a picture of one of the drones that appeared to have an integrated satellite terminal. “It is a violation of commercial Starlink terms of service to use the terminal for weapon systems. This applies to all users and is shut down when discovered,” Musk wrote at the time. “There is a separate network called Starshield, which is operated by the US government. This is not under SpaceX control.” Within weeks of the US launching strikes in Iran, “SpaceX executives met Pentagon officials and argued the military was underpaying for the service,” the Reuters article said. “SpaceX argued the LUCAS drones were operating under conditions that aligned more closely with its aviation tier subscription rather than a lower priced land or mobility service. Pentagon officials argued that the $25,000 price tag—a monthly fee—was designed for aircraft, not kamikaze drones that used [a] Starlink connection for a matter of minutes or hours, according to one of the sources,” Reuters reported. The Pentagon “ultimately agreed to pay SpaceX’s proposed price increase” from $5,000 to $25,000, according to Reuters. LUCAS drones give the military a cheaper alternative to traditional missiles and grew out of an effort to reverse-engineer Iranian-built drones. Each drone reportedly costs about $35,000. SpaceX’s IPO filing last week said that revenue for its government connectivity business dropped in the most recent quarter. SpaceX’s overall connectivity revenue in Q3 2026 was $3.3 billion, a year-over-year increase of $782 million. The increase was driven by boosts in revenue from consumers, large businesses, mobile partnerships with wireless carriers, and Starlink’s aviation and maritime offerings. The overall revenue increase would have been higher if not for “a decrease of $175 million in our government connectivity business,” SpaceX said. While SpaceX isn’t the only operator of low Earth orbit satellites, Reuters notes that “no other company provides a comparable alternative to Starlink, which has become an increasingly critical tool in modern warfare since Russia’s invasion of Ukraine in 2022.” The Department of Defense declined to comment on its negotiations with SpaceX today, but told Ars that it “is operating in accordance with the terms and conditions of its contracts.” The department also provided Ars with a statement indicating that the military is looking for alternatives to SpaceX. “The Department of War is committed to fostering a competitive environment for commercial satellite communications and is conducting comprehensive market research to continuously monitor commercial offerings that align with government requirements,” the Pentagon statement said. “We are actively engaging with industry to identify innovative solutions and new entrants, ensuring acquisitions are inclusive of a diverse range of capable vendors.” The statement added that the Space Force’s “Commercial Satellite Communications Office is working on additional options with other proliferated low earth orbit partners as part of its strategy to leverage the unprecedented capabilities provided by the commercial SATCOM industry.” We contacted SpaceX and will update this article if it responds. Pentagon spokesperson Sean Parnell responded to the Reuters article in an X post today. “The Fake News media has the story wrong, again. SpaceX remains a strong and valued partner to the Department of War. The claims in this article are simply not based in reality and do not reflect the close, effective collaboration between our teams.” Musk shared Parnell’s post, calling it a “correction issued by [the] Department of War.”