Defense Secretary Pete Hegseth made the pilgrimage to SpaceX headquarters in Starbase, Texas on Monday, and he came bearing compliments. "There is nothing like this in the world," Hegseth declared during his visit, calling the facility a "testament to the strength of American ingenuity." High praise, especially coming during what he's calling the "Arsenal of Freedom" tour.

Pentagon Goes All-In On AI

But the real news wasn't just about rockets. Hegseth announced that Elon Musk's xAI artificial intelligence model, Grok, will be integrated into Pentagon operations later this month. "Very soon we will have the world's leading AI models on every unclassified and classified network throughout our department," the Defense Secretary said.

The Pentagon is making a serious bet on artificial intelligence. "We will become an 'AI-first' warfighting force across all domains," Hegseth explained. He also celebrated the appointment of Emil Michael as Chief Technology Officer of the War Department, signaling the administration's tech-forward approach.

Hegseth's message was clear: the "peacetime science fair" is over. Under President Donald Trump, he said, the administration intends to maintain America's "global AI dominance."

SpaceX Lands Major Defense Contract

The timing of Hegseth's visit is interesting. SpaceX just landed a $739 million contract with the U.S. Space Force to bolster the military's missile warning and tracking capabilities. It's hardly the company's first rodeo with defense contracts, and it likely won't be the last.

SpaceX is reportedly a leading contender to work on Trump's Golden Dome missile defense system, potentially alongside Palantir Technologies (PLTR), the Peter Thiel-backed AI software company. Palantir has been making waves lately—industry experts recently suggested the company played a role in the capture of Venezuelan President Nicolás Maduro.

The NASA Connection

SpaceX's influence extends beyond military applications. The company is positioned to be central to America's space exploration program, especially with Jared Isaacman now serving as NASA Administrator under Trump. Isaacman, a close Musk ally and former CEO of Shift4 Payments (FOUR), recently reaffirmed NASA's commitment to returning humans to the moon through the Artemis 3 mission.

Isaacman also outlined ambitions for reaching Mars and emphasized that partnerships with private companies like SpaceX and Jeff Bezos-backed Blue Origin are essential for achieving these interplanetary goals. It's a cozy arrangement that blurs the lines between public space exploration and private industry—with SpaceX sitting comfortably at the intersection.