#JEFF BEZOS ROCKET BLUE ORIGIN LICENSE#

SpaceX, with its Starlink constellation, is five years ahead of Amazon and already has launched 5,000 satellites. In not considering SpaceX, it chose to not fund its largest competitor in the space-based Internet business. However, it is not clear how much legal ground there is to stand upon here.Īmazon has a ready defense.

The lawsuit is spicy from the standpoint of the space community, because it highlights the tensions between Musk and Bezos and the fact that Musk's company has consistently outperformed Blue Origin in nearly all manner of spaceflight activities. However, it is generally expected that if Amazon demonstrates progress toward that goal, it could receive an extension on these deadlines. The remainder must be launched within three years of that.

#JEFF BEZOS ROCKET BLUE ORIGIN LICENSE#

Under the license it received from the Federal Communications Commission, Amazon is required to launch half of its planned 3,236 satellites into low-Earth orbit by July 30, 2026. The multinational technology company announced in 2019 that it would develop a large broadband satellite Internet constellation in 2019 called Project Kuiper. 'The claims in this lawsuit are completely without merit, and we look forward to showing that through the legal process,' an Amazon spokesperson told Ars. In terms of relief, the plaintiffs are seeking damages and attorney's fees.Īmazon said there is no validity to the lawsuit. 'The near-constant drumbeat of delays and bad news from Blue Origin and its business partner and customer, ULA, now threatens to jeopardize the entire Kuiper program, underscoring the harm the Board’s utter failure to comply with its fiduciary duties has caused to Amazon,' the lawsuit states. Decisions about the launch contracts for Project Kuiper were made when it was clear these large boosters would not be ready to deliver large numbers of satellites ahead of a 2026 deadline set by the Federal Communications Commission. The lawsuit makes much of the ongoing delays to Blue Origin's New Glenn rocket and the Vulcan booster. He founded and owns Blue Origin, and his launch company also has a contract to provide rocket engines for United Launch Alliance's Vulcan rocket. The primary issue raised by the lawsuit is that Amazon's board of directors did not consider SpaceX as a potential launch contractor and instead chose companies that would enrich Bezos. Additionally, the lawsuit states that Amazon has already paid $1.7 billion to the three launch providers, including $585 million directly to Blue Origin. The company's second-largest acquisition of studio MGM was valued at $8.5 billion in 2021. With this deal for 83 total launches, Amazon acquired an extraordinary amount of medium- and heavy-lift launch capacity over the next five years, procuring launches from every major Western provider except for its direct satellite competitor, SpaceX.Īmazon did not specify the value of the deal, but the lawsuit notes it was 'the second-largest capital expenditure' in Amazon's history, after the company's $13.7 billion acquisition of Whole Foods. Mega-launch contractsĪt issue is Amazon's mega-award in 2022 for launch contracts to three companies, Blue Origin, United Launch Alliance, and Europe-based Arianespace. 'Given these factors, Amazon’s persistent refusal to even consider SpaceX-and the Board’s failure to question its exclusion-lays bare the extent to which Bezos’ personal rivalry influenced Amazon’s procurement process,' the lawsuit states. Nevertheless, the lawsuit alleges, SpaceX was never considered due to an intense and personal rivalry between that launch company's founder, Elon Musk, and Bezos, who has a competing rocket company in Blue Origin. The plaintiffs say that the Falcon 9 costs less than its competitors and has other advantages, such as being available now. Further Reading Jeff Bezos and Amazon just hired everybody but SpaceX for Project Kuiper

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