Amazon's purchase from SpaceX for the Kuiper Project

Amazon is bent on developing a broadband satellite internet system, poised to rival Starlink. What's surprising is that for the so-called "Kuiper" project, Amazon has procured three Falcon 9 rocket flights owned by none other than SpaceX - the company that operates Starlink.

The "Kuiper" project signifies competition for Starlink, making Amazon's decision not just unexpected but incredibly intriguing. As of now, Amazon has secured three Falcon 9 launches, with the likelihood of more purchases in the future. Amazon's choice to utilize rockets from Elon Musk's enterprise, instead of those crafted by Blue Origin (owned by Jeff Bezos - the founder of Amazon), was decided upon by shareholders early this year. This resulted in the calling off of a sizable order with Bezos's company, citing an unwarranted disregard for SpaceX's offer owing to a feud between the billionaires.

For many years, SpaceX has held the title for the most active rocket operator globally by deploying thousands of satellites. So far, it has launched over 6.4 thousand Starlink devices into orbit, with more than 5.4 thousand still functional. SpaceX serves a plethora of entities worldwide, including NASA and the US military. In a statement given on a Friday, Amazon divulged that the three procured Falcon 9 flights will commence in mid-2025. The particulars of the payment for this service haven’t been disclosed.

The decision to acquire launches from SpaceX could perhaps be attributed to setbacks in the development timeline of Blue Origin's rockets, as well as other companies from which launches were previously procured, such as United Launch Alliance, Arianespace, and ABL. Amazon had placed orders for 77 launches with these companies but is now up against the clock due to a deadline set by the Federal Communications Commission. To adhere to federal regulations, Amazon must dispatch half of the proposed 3236 Kuiper satellites into orbit by July 2026.

The investment Amazon has poured into Project Kuiper could ultimately exceed $10 billion. Earlier this year, the retail giant undertook the construction of a data processing center in Florida at a cost of roughly $120 million. As per Amazon's reports, the initial satellite prototypes have successfully completed their testing phase.