SpaceX requested that the U.S. military pay $25,000 per month for Starshield access on each kamikaze drone, up from a previous rate of $5,000 per connection. The Pentagon initially objected to the increase but ultimately agreed to the new fee.

Elon Musk, CEO of SpaceX, disputed a report about the pricing change, stating on X that the article was false. He wrote that the U.S. military made improper use of the commercial Starlink system for military purposes, which he described as a direct violation of Starlink’s terms of service. Musk attributed the misuse to the defense contractor that built the drones, saying the company incorrectly used the civilian Starlink system instead of Starshield.

On March 1, Musk stated that using commercial Starlink terminals for weapon systems violates Starlink’s terms of service and that such use is shut down when discovered. Starshield is a government-specific satellite network operated by SpaceX, separate from the commercial Starlink service.

SpaceX executives met with Pentagon officials shortly after U.S. strikes in Iran began and argued the military was underpaying for satellite service because the drones operated under conditions more aligned with SpaceX’s aviation-tier subscription. Pentagon officials countered that the $25,000 monthly fee was designed for aircraft, not kamikaze drones that use the connection for only minutes or hours.

The Pentagon denied any violation of its agreement with SpaceX regarding Starlink usage and stated it is operating in accordance with the terms of its contracts with the company.

In April, Pentagon officials met with Terrence O’Shaughnessy, a retired four-star Air Force general who leads SpaceX’s defense business, to revisit Starshield pricing. The Pentagon is considering purchasing more than 3,500 additional Starshield terminal subscriptions, including 100 under the higher-priced aviation tier. It is unclear whether the purchase or pricing has been finalized.