Amazon Signs Contract with SpaceX for Satellite Launches

01-12-2023
PixelVortex
Amazon Signs Contract with SpaceX for Satellite Launches
SpaceX Falcon 9 rocket in 2021.
Eva Marie Uzcategui/Bloomberg
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In a surprising move, Amazon.com Inc. has struck a deal with its rival SpaceX for three launches of Elon Musk's Falcon 9 rocket. This partnership will enable Amazon to expand its satellite constellation and propel its plans for internet-from-space services. The contract, announced on Amazon's website, signals a significant reliance on SpaceX, its main competitor, to transport its satellites into orbit. The Falcon 9 launches are scheduled to commence in mid-2025.

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SpaceX's Starlink project, already operational with approximately 5,000 satellites in low-Earth orbit, offers internet services globally. Amazon's own venture, Project Kuiper, is aiming for a similar business model and recently launched its first two test satellites. The company plans to leverage SpaceX's expertise to accelerate its progress in the sector. Beta testing with corporate clients for Project Kuiper is set to begin in the latter half of 2023.

Initial setbacks and testing failures had caused delays in Amazon's satellite launch timeline. The company had originally anticipated deploying its first satellites by the fourth quarter of 2022. However, complications with launch partners forced Amazon to reevaluate their strategy and seek alternate solutions.

In 2022, Amazon entered agreements with three launch providers: United Launch Alliance (ULA), Blue Origin LLC (founded by Amazon's CEO Jeff Bezos), and Arianespace. These partnerships aimed to launch a considerable portion of the Project Kuiper constellation into orbit. However, the process was hindered by the fact that the rockets used were still in the developmental stage and faced repeated delays.

To overcome these challenges, Amazon turned to SpaceX and its reliable Falcon 9 rockets. The company also benefitted from a separate deal with ULA, wherein the older Atlas V rocket successfully launched Amazon's first two satellites in October. The company still has eight remaining launches lined up with the Atlas V rocket, which is gradually being phased out.

This collaboration has not come without controversy. Earlier this year, a pension fund filed a lawsuit against Bezos, members of Amazon's board, and the company itself. The suit alleged that Amazon's decision to exclude SpaceX rockets as launch options was influenced by the rivalry between Bezos and Musk. The legal action claimed that this choice resulted in higher costs and project delays for Amazon. Amazon refuted these claims, stating they held no merit.

With this new contract, Amazon is primed to accelerate its satellite plans and compete with SpaceX's Starlink project in the race to deliver global internet coverage from space. As the Falcon 9 launches are set to commence in 2025, the space industry eagerly awaits further developments in this intriguing partnership between two prominent players in the field.