Defense Secretary Pete Hegseth last week announced the formation of a Pentagon advisory panel, Project Meridian, aimed at studying the future of warfare and addressing readiness gaps for the U.S. military over the next two decades. Among the panel’s co-directors is Elon Musk, chief executive of SpaceX, whose return to a government role has reignited concerns over potential conflicts of interest given his substantial business ties to the Department of Defense and NASA.

Project Meridian, which includes other defense industry figures such as Palmer Luckey, founder of Anduril, seeks to promote a more agile military reliant on advanced autonomous technologies, including drones and semiautonomous fighter jets. However, ethics experts and watchdog organizations have cautioned that the composition of the panel raises questions about whether members might unduly influence defense priorities to benefit their own companies.

Max Stier, chief executive of the Partnership for Public Service, noted that Musk’s prior government effort, the Department of Government Efficiency (DOGE), resulted in significant waste and disruption, costing taxpayers over $1,000 each. Stier also pointed out that Musk’s financial interests remain deeply intertwined with the advisory role he now holds, a concern echoed by Virginia Burger, a defense policy analyst at the Project on Government Oversight, who warned of the risk that project recommendations could be aligned with the commercial objectives of SpaceX and Anduril.

In response, Pentagon officials emphasized that the nonprofit Mitre Corporation, an independent research organization, is overseeing the panel’s work. Mitre is expected to apply technical rigor and enforce conflict-of-interest safeguards to mitigate the possibility of undue influence.

Elon Musk appeared alongside Mr. Hegseth at a Quantico, Virginia event attended by military personnel, where Project Meridian was formally unveiled. He subsequently participated in meetings with fellow panelists in Quantico and at Mitre’s offices in McLean, Virginia. Newt Gingrich, a former House speaker and co-director of the initiative, defended Musk against allegations of self-dealing, dismissing concerns as reflective of broader systemic dysfunction.

Musk’s return to a Pentagon advisory role follows a turbulent period in which he previously held a high-profile government position under former President Donald Trump. That stint ended amid controversies and public disagreements with Trump despite Musk’s substantial financial support for Trump’s 2024 campaign and Republican candidates in recent midterm elections. Since last year, SpaceX has secured at least $6.9 billion in government contracts from the Pentagon and NASA.

Palmer Luckey, whose company recently secured multibillion-dollar Army and Air Force contracts for autonomous systems and fighter jets, also serves as a co-director. Other panel members include Dino Mavrookas, CEO of Saronic, which develops drone boats; Joe Lonsdale, co-founder of Palantir; Safra Catz, executive vice chair of Oracle; and retired Army General James Rainey, now a defense technology advisor.

At the introduction of Project Meridian, Hegseth emphasized the need for the military to “conquer” new domains and master emerging capabilities, including autonomous warfare command—areas closely tied to the business interests of Musk and Luckey. The panel’s mission aligns with a longstanding Defense Department approach to collaborating with industry in developing next-generation military technology.