Elon Musk-led aerospace firm SpaceX has cemented its role as a pivotal defence supplier, granting the Pentagon access to a dedicated, spy-grade satellite setup known as Starshield.

The company's standard internet network has likewise been a game-changer on the front line, where troops in Ukraine are using thousands of connection hubs to stay online during blackouts caused by the war with Russia.

However, exactly who has access to which network—and what SpaceX stands to gain from the deal—is still a fierce point of contention. According toReuters, company executives ramped up the costs for linking up the US military's LUCAS (Low-cost Uncrewed Combat Attack System) kamikaze drones, which are cheap, pilotless attack aircraft designed to track down targets and explode on impact.

Insiders claim the aerospace firm successfully pushed defence officials into paying nearly $25,000 (£18,670) for each link rather than the original $5,000 (£3,733),multiplyingthe final bill per aircraft by five.

Almost everything you’re saying is false and simply copying fake news from other accounts.There is a US government arm of SpaceX called Starshield, which has a different set of satellites than Starlink, which is for civilian use.The company that makes the suicide drones…

In a separate post, Musk cleared up the situation, explaining that 'there is a US government arm of SpaceX called Starshield, which has a different set of satellites than Starlink, which is for civilian use.' He went on to say that 'the company that makes the suicide drones incorrectly used the civilian system, instead of the Starshield.'

The tech tycoon also highlighted what he described as a 'correction' from Pentagon representative Sean Parnell, who had posted that the 'Fake News media has the story wrong, again.'

The Fake News media has the story wrong, again.@SpaceXremains 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.https://t.co/872Maa5FX2

In an earlier post, Parnell had stated that 'SpaceX remains a strong and valued partner to the Department of War,' before adding that 'the claims in this article are simply not based in reality and do not reflect the close, effective collaboration between our teams.'

The row highlights the immense leverage SpaceX now holds over the military. The timing could not be worse for the firm, which is preparing to go public later this year at a $2 trillion (£1.5 trillion) valuation. Highly profitable state contracts and its public Starlink service still make up the vast majority of its income. Forcing the Pentagon to accept heavily inflated prices for its Starshield network could easily spook potential investors.

Source: International Business Times UK