Amazon has made a surprising move by signing a contract with Elon Musk's SpaceX to launch satellites for its Project Kuiper, despite the long-standing rivalry between Amazon founder Jeff Bezos and SpaceX CEO Elon Musk. The decision comes after an investor lawsuit claimed that Amazon excluded SpaceX from its procurement process due to Bezos' personal rivalry with Musk.

The lawsuit alleged that Amazon's leadership breached its fiduciary responsibilities by not choosing SpaceX as the most affordable launch provider for Project Kuiper, which aims to provide broadband internet service to compete against SpaceX's Starlink. Amazon denied the claims, stating that they were without merit.

In a statement, Amazon announced that it has contracted SpaceX for three launches of Project Kuiper satellites using SpaceX's Falcon 9 rocket. Amazon emphasized that its satellites were designed to accommodate multiple launch providers, allowing them to reduce schedule risks and accelerate their mission to connect unserved and underserved communities around the world.

Last year, Amazon revealed that it had secured up to 83 launches for over 3,000 satellites from commercial space companies, including Arianespace, Blue Origin, and United Launch Alliance (ULA). The inclusion of Blue Origin, which was founded by Bezos, raised eyebrows due to the rivalry between Bezos and Musk.

In October, Amazon successfully launched its first two Project Kuiper satellites aboard a ULA Atlas V rocket. However, industry insiders criticized the mission, as the satellites were the only payload on the rocket, utilizing only a fraction of its capacity. Brian Weeden, an executive at the space sustainability nonprofit Secure World Foundation, likened it to using a tractor-trailer to transport a couple of suitcases.

The new partnership with SpaceX will help Amazon expedite its satellite deployment, as the company aims to launch more than 3,300 satellites into low Earth orbit. They need to meet the requirement of launching half of the Kuiper constellation by 2026 to comply with their license from the Federal Communications Commission.

The SpaceX launches for Project Kuiper are scheduled to begin in mid-2025, with Amazon expecting to have enough satellites deployed by the second half of next year to initiate early customer pilots. However, they face tough competition from Starlink, which is expected to generate the majority of SpaceX's revenue next year. Musk has expressed intentions to eventually spin-off IPO for Starlink once a reasonable cash flow prediction is possible.

The rivalry between Starlink and Project Kuiper is set to benefit billions of people worldwide who still lack internet access, particularly in remote or disconnected areas. Although the rivalry persists, with Musk and Bezos constantly poking fun at each other, their competition holds the potential to bridge the digital divide and improve global connectivity.

In conclusion, Amazon's unexpected partnership with SpaceX marks a significant development in the space industry as Project Kuiper prepares to compete against Starlink. As the race for global internet coverage intensifies, the rivalry between Bezos and Musk is sure to continue, with both billionaires aiming to carve their place in the history of space exploration and connectivity.