This network, called Starshield, would reportedly be able to gather continuous imagery all over Earth for US intelligence, using a mix of large imaging satellites to collect data and relay satellites to transmit information. According to one source who spoke to Reuters, it has the potential to make it so "no one can hide."
Comment: Whilst it certainly isn't great news (if true), the US has demonstrated time and again that it is no longer capable of following through on such projects. Furthermore, it's likely that, at least abroad, it will be neutralised in one way or another: 'Secret Russian electronic warfare weapon disrupting GPS of ships & jets' claims Estonia's military chief, amid NATO wargames
Neither SpaceX nor the NRO directly confirmed the company's involvement in the project, but an NRO spokesperson told Reuters, "The National Reconnaissance Office is developing the most capable, diverse, and resilient space-based intelligence, surveillance, and reconnaissance system the world has ever seen."
Comment: It seems a little odd that Musk, who can be highly critical of the US and the trajectory it's currently on, would enter into such an agreement.