Amazon Hires Elon Musk’s SpaceX for Rocket Launch
Amazon has agreed with Elon Musk’s SpaceX to commission three rocket launches for its Project Kuiper satellites. The pact marks a noteworthy development in the ongoing saga of banter between Amazon’s founder, Jeff Bezos, and SpaceX’s CEO, Elon Musk, a narrative that has often revolved around the realm of space ventures.
A legal dispute, filed a few months ago by an investor, alleged that the rivalry between Bezos and Musk influenced Amazon’s decision not to select SpaceX for launching satellites for Project Kuiper. This initiative is positioned to rival SpaceX’s Starlink broadband internet service. The lawsuit contended that Amazon, in doing so, breached fundamental fiduciary responsibilities. Amazon vehemently refuted these claims, asserting their lack of merit.
In a recent announcement, Amazon disclosed the formalization of a contract with SpaceX for three launches utilizing SpaceX’s Falcon 9 rocket. The rationale behind this decision, according to Amazon, stems from the initial design of Project Kuiper satellites, which was conceived with the flexibility to accommodate multiple launch providers and vehicles. This strategic approach aims to mitigate schedule risks and expedite the mission to connect unserved and underserved communities globally.
Last April, Amazon revealed securing up to 83 launches for over 3,000 satellites from three commercial space entities: Arianespace, Blue Origin, and United Launch Alliance (ULA). Notably, Blue Origin, founded by Bezos, has been part of this consortium. Despite stepping down as CEO in 2021, Bezos continues to serve as Amazon’s executive chairman.
In October, Amazon initiated Project Kuiper with the launch of two satellites via a UAL Atlas V rocket in Florida. The objective is to deploy more than 3,300 satellites into low-Earth orbit, with a mandate to launch half of the Kuiper constellation by 2026 to comply with Federal Communications Commission licensing.
Despite being the sole payload on the Atlas V, the satellites represented a fraction of its payload capacity, leading to comparisons with “using a tractor-trailer to transport a couple of suitcases,” as described by Brian Weeden, an executive at the Secure World Foundation, a space sustainability nonprofit, to Bloomberg.
Amazon anticipates the SpaceX launches carrying Project Kuiper payloads to commence in mid-2025. By the latter half of the next year, the company aims to have sufficient satellites deployed to initiate early customer pilots. However, Starlink, SpaceX’s existing project, holds a substantial lead, projected to constitute the majority of SpaceX’s revenue in the coming year, as reported by Bloomberg. Musk has hinted at a potential spin-off IPO for Starlink, contingent upon reasonably accurate predictions of its cash flow.
The impending rivalry between Starlink and Project Kuiper is poised to address the digital divide by providing internet access to billions of individuals in remote or inaccessible locations globally. Despite the overarching mission, the friendly banter and occasional jabs between Musk and Bezos are unlikely to subside, as evidenced by Musk’s November 2021 tweet invoking Judge Dredd after Blue Origin lost a legal battle over NASA’s moon lander contract awarded to SpaceX. “You have been judged,” declared Musk in the tweet, continuing the playful rivalry.