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Amazon chooses everyone but SpaceX to launch its Starlink competitor
Amazon has announced a series of record-breaking launch contracts that will place a “majority” of its 3,236-satellite Project Kuiper constellation in orbit in the hope of blanketing the Earth with high-quality internet alongside OneWeb, Starlink, Telesat, and others.
Of 68 firm launch contracts and a total of 83 contracts including unexercised options, SpaceX – the world’s most cost-effective, available launch provider – is fully absent. Instead, Amazon, has awarded three batch contracts to United Launch Alliance (ULA), Arianespace, and Blue Origin. Prior to this announcement, Amazon had already purchased two launches of prototype satellites on startup ABL Space’s RS1 rockets and nine operational launches on ULA Atlas V rockets, rounding out what is undoubtedly the most expensive set of commercial launch purchases in spaceflight history.
More likely than not, Amazon is paying a bare minimum of $100 million per launch, though $150-200 million is probably closer to reality. All three of the rockets now scheduled to launch most Kuiper satellites have yet to fly. Arianespace’s Ariane 6 and ULA’s Vulcan Centaur could debut in late 2022, though 2023 is more likely. Blue Origin’s partially reusable New Glenn is unlikely to fly before 2024 or even 2025.
Amazon has now purchased:
- 9 Atlas V launches, each likely costing $150-200 million.
- 12 New Glenn launches, with options for 15 more. Blue Origin says New Glenn will be able to carry 61 satellites per launch. The company has yet to reveal pricing but $100 million per launch is a probable floor.
- 18 Ariane 6 launches carrying 35-40 satellites apiece. As of 2014, the rocket’s most capable variant was expected to cost at least €115 million (~$125 million) per launch.
- 38 Vulcan Centaur launches carrying 45 satellites apiece. ULA wants the cheapest Vulcan variant to cost ~$100 million. Project Kuiper, which likely needs the most expensive Vulcan variant, will probably pay closer to $125-150 million per launch.
All told, assuming Atlas V can launch at least 15-20 satellites apiece, Amazon’s latest contract likely means that the company has secured enough launch capacity to fully launch the first phase of its Project Kuiper constellation without exercising options. Those 77 operational launches will likely cost the company a minimum of $9.5-10 billion before accounting for the cost of Kuiper satellites or payload adapters.
According to NASA’s ELVPerf calculator, which uses official data provided by each company, Vulcan’s heaviest VC6 variant can launch ~27 tons (~60,000 lb) and New Glenn can launch ~35 tons (~77,000 lb) to a low 300-kilometer (~190 mile) insertion orbit. Ariane 6’s most capable ’64’ variant will likely be able to launch about 20 tons (~44,000 lb) to the same orbit, though official info is only available for a circular 500-kilometer orbit. Assuming Project Kuiper launches are not volume constrained, meaning that most of each rocket’s available performance is being taken advantage of, each Kuiper satellite likely weighs no more than 500-600 kilograms (1100-1300 lb).
Falcon 9 recently broke an internal payload record with the successful launch of 16.25 tons of Starlink satellites to a similarly low insertion orbit. Including the mass of a payload adapter and deployment mechanism, Falcon 9’s true performance was likely closer to 17-18 tons. Combined with Falcon 9’s cheapest public commercial launch contract (~$50 million), it’s possible that SpaceX’s partially reusable Falcon 9 rockets could have launched 25-30 Kuiper satellites apiece for an average cost of ~$1.7 to $2 million per satellite – around 50-80% cheaper than Kuiper’s likely average.
Those significant savings don’t consider SpaceX’s next-generation Starship launch vehicle, which will likely reach orbit and begin commercial launches at least a year before New Glenn. Starship could feasibly carry 100-150 Kuiper satellites per launch and, if full reusability is achieved, might cost less than Falcon 9 despite offering at least five times the performance.
Per Amazon’s Project Kuiper FCC constellation license, the company will need to launch half of its constellation – 1618 satellites – by July 2026. It’s not actually clear if Arianespace, ULA, and Blue Origin will be able to collectively complete the roughly 36 launches that will require over the next four years. In the last four years, Arianespace’s Ariane 5 and ULA’s Atlas and Delta rockets have collectively launched 38 times. The first Kuiper satellite prototype is scheduled to launch no earlier than late 2022, meaning that operational launches are unlikely to begin before mid-2023.
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Elon Musk
Space finally faced the people living next to its next Terafab mega-project
SpaceX confirmed Terafab’s Grimes County site is locked in, with construction starting within months.
SpaceX and Terafab representatives sat across from Grimes County residents for the first time on Wednesday, telling a packed Commissioners Court room that the $55 billion chip manufacturing project is now a done deal at the Gibbons Creek Reservoir site.
The meeting followed a $10 million check SpaceX sent the county earlier this week, satisfying a payment deadline built into the tax abatement agreement both sides signed in June. Elon Musk shared a post on X confirming the payment, and County Judge Joe Fauth told the San Antonio Express-News his office deposited the check after it beat its deadline.
Wednesday’s session, first reported by KBTX, moved the project from paperwork to construction. Terafab representative Riley Trennell told residents the JETI tax break agreements with Iola ISD and Anderson-Shiro CISD are signed and active, and that civil work and foundation prep are starting almost immediately. Renderings of the facility could be released within days, he said, with construction beginning within months.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Musk first announced Terafab in March as a joint venture between Tesla, SpaceX and xAI aimed at producing over a terawatt of AI compute annually, an amount that dwarfs the roughly 20 gigawatts the entire global chip industry produces today. Intel joined as a manufacturing partner in April. Musk has said the project needed its own day in the spotlight rather than being squeezed into an earnings call, and for months the Grimes County site remained unconfirmed even as reporting pointed there.
SpaceX attorney Buck Brannon used Wednesday’s meeting to note that the company’s abatement is roughly 78 percent, not the 100 percent some earlier reports suggested. In exchange, SpaceX will pay Grimes County a fixed $20 million a year for 35 years, a total of $710 million, which Brannon said exceeds the $14 million Tesla paid Travis County in 2025.
SpaceX also addressed environmental concerns that have followed the project since Musk’s Terafab partnership with Intel was announced. Representatives said Terafab will not raise electric bills for other ratepayers, will not deplete local water supplies and will not draw down the Navasota River. SpaceX confirmed it owns the Navasota River pumping station, which it plans to use to divert stormwater into the Gibbons Creek Reservoir, and said it will build its own natural gas plants to power the facility rather than pulling from the ERCOT grid.
Grimes County commissioners also approved an addendum letting county employees use ten approved AI chatbots for work, including Grok.
Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
Space finally faced the people living next to its next Terafab mega-project
SpaceX has solved Starship’s biggest challenge, Elon Musk says
