Amazon announced Friday that it has purchased three Falcon 9 rocket launches from SpaceX beginning in mid-2025 to help deploy the retail giant's network of Kuiper Internet satellites.
In a statement, Amazon said the SpaceX launches will provide "additional capacity" to "supplement existing launch contracts to support Project Kuiper’s satellite deployment schedule." SpaceX has its own broadband satellite fleet, with more than 5,100 Starlink spacecraft currently in orbit, making it a competitor with Amazon.
Last year, Amazon bought up most of the Western world's excess launch capacity from everyone but SpaceX, securing 68 rocket flights from United Launch Alliance, Arianespace, and Blue Origin to deploy thousands of satellites for the Kuiper broadband network. Amazon previously contracted with ULA for nine Atlas V launches to support the initial series of Kuiper launches, the first of which lifted off in October with Amazon's first two Kuiper prototype satellites. More Atlas Vs will start launching operational Kuiper satellites next year.
SpaceX's Falcon 9 rocket, the world's most reliable launch vehicle, was left out of Amazon's multibillion-dollar rocket purchase. This led to a lawsuit filed in August by shareholders of a pension fund that includes Amazon stock. The suit claims Amazon, its founder Jeff Bezos, and its board of directors breached "their fiduciary duty" and failed to consider SpaceX during the launch service procurement.
The Falcon 9 rocket is the only rocket with any openings in its launch schedule that could make up a shortfall from delays caused by Amazon's other launch providers. SpaceX has launched 88 Falcon 9 or Falcon Heavy rockets so far this year and aims to increase the launch cadence to one flight every 2.5 days in 2024. Most of these launches are for SpaceX's own Starlink Internet network.
Amazon's Project Kuiper is one of several satellite "megaconstellations" at various stages of development to provide low-latency broadband connectivity to consumers, governments, and corporate customers around the world. SpaceX's Starlink is the biggest of the group, and one of two (along with OneWeb) low-Earth orbit constellations currently providing commercial Internet service.
But once again, SpaceX has proved it will happily take money from its competitors to launch their satellites. OneWeb turned to SpaceX to launch its broadband satellites after losing access to Russian rockets in the aftermath of Russia's invasion of Ukraine. Other communications satellite operators that compete with Starlink, including Viasat and SES, have launched their spacecraft on SpaceX rockets.
A bitter pill for Amazon indeed, and slightly embarrassing for Blue Origin.
I don't know about funny, this is actually a little disturbing to me. Like, here the decision is silly and no real principles involved, but the fact that corporations can be forced to take any technically legal action (including lobbying to change the law) to improve short term bottom line has more serious consequences elsewhere.