The Pentagon has handed a new future-of-warfare study to Elon Musk and Palmer Luckey, two men whose companies live off defense contracts — good for them, bad for taxpayers and rival contractors.

• Defense Secretary Hegseth launched a 120-day study called Project Meridian to plan for AI, robotics, drones, and even warfare underground and on the moon.
• It will be co-led by Musk, Anduril CEO Palmer Luckey, and former House Speaker Newt Gingrich.
• Musk's companies have collected at least $38 billion in government contracts, loans, and subsidies, mostly through SpaceX and Starlink.
• Anduril just won a $20 billion Army drone deal and is part of the Golden Dome missile-defense effort, which could cost anywhere from $185 billion to over $1 trillion.
• The Pentagon says the nonprofit MITRE will handle the analysis and apply conflict-of-interest safeguards, but officials worry competitors will challenge any contracts that follow.

Outlook: The study wraps in four months with a public report, and expect legal and political fights if its recommendations point money toward SpaceX or Anduril.