Feb. 16, 2026, 6:19 p.m. ET Elon Musk’s SpaceX and its xAI subsidiary are competing in a secret new Pentagon contest to produce voice-controlled, autonomous drone swarming technology, Bloomberg News reported on Monday, citing people familiar with the matter. SpaceX, xAI and the Pentagon’s defense innovation unit did not immediately respond to requests for comment. Reuters could not independently verify the report. Texas-based SpaceX recently acquired xAI in a deal that combined Musk’s major space and defense contractor with the billionaire entrepreneur’s artificial intelligence startup. It occurred ahead of SpaceX’s planned initial public offering this year. SpaceX and its xAI unit are competing to produce voice-controlled, autonomous drone swarming technology, AP Musk’s companies are reportedly among a select few chosen to participate in the $100 million prize challenge initiated in January, according to Bloomberg. The six-month competition aims to produce advanced swarming technology that can translate voice commands into digital instructions and run multiple drones, the report said. Explore More