Amazon and Blue Origin Struggle to Catch SpaceX in the Space Race

Amazon and Blue Origin face significant challenges in closing the gap with SpaceX in the satellite internet and space launch markets, despite recent efforts to strengthen their positions.

Amazon announced on April 14, 2026, an agreement to acquire satellite company Globalstar for $11.57 billion to expand its satellite business and compete with SpaceX’s Starlink. The deal, expected to close in 2027, will enable Amazon Leo—the company’s commercial satellite business—to provide direct-to-device cell service without requiring cell towers or antennas. As part of the acquisition, Amazon will partner with Apple to continue supporting iPhone and Apple Watch models using Globalstar’s satellite constellations for features including Emergency SOS, Messages, Find My, and Roadside Assistance.

In 2025, Globalstar reported revenue of $273 million, a 9% increase from the previous year, driven largely by recurring sales to Apple, though it posted a net loss of $8.65 million. This compares to a net loss of $63.16 million in 2024. Following the announcement, Globalstar’s stock rose 10% and Amazon’s stock increased by 3%.

Amazon Leo has launched more than 200 satellites, with its commercial service planned for mid-2026. In contrast, SpaceX’s Starlink has deployed over 10,000 satellites and serves more than 10 million users since launching to customers in 2021. SpaceX maintains a 99.5% launch success rate and operates more Starlink satellites than all other global operators combined.

Blue Origin, Jeff Bezos’s rocket company, achieved a milestone on April 20, 2026, by successfully reusing the first-stage booster of its New Glenn rocket during its first commercial launch. The booster landed on a drone ship in the Atlantic Ocean, marking the first time Blue Origin accomplished such a feat. Only SpaceX had previously demonstrated this capability.

However, shortly after the successful booster landing, Blue Origin’s upper stage placed the payload—a BlueBird 7 satellite for AST SpaceMobile—into an off-nominal orbit. Around seven hours after liftoff, AST SpaceMobile confirmed the satellite would not survive, resulting in its destruction upon atmospheric reentry. This marked Blue Origin’s first commercial launch.

Despite the mishap, Elon Musk responded with a one-word “Congrats” message on X (formerly Twitter) regarding the booster landing. Blue Origin’s launch came amid growing speculation about a potential SpaceX IPO, with valuation estimates rising. Amazon faces pressure to deploy approximately 1,400 additional satellites to meet a critical FCC deadline, with only months remaining to do so.

Analyst Chris Quilty told Forbes that the developments signal “a setup for the battle of the Titans between SpaceX and Amazon” in the satellite internet sector.