Amazon has announced a significant development in its satellite internet business as the company signed a contract with SpaceX, its main rival in the industry, for three launches of its Kuiper satellites. This contract comes as Amazon faces a deadline to get its spacecraft into orbit.

The agreement with SpaceX marks a victory for the company and highlights the reliability and success of its Falcon 9 rocket, which has become a prominent player in the United States space industry. The contract also follows a lawsuit filed by an Amazon shareholder accusing the company of favoritism towards Blue Origin, Jeff Bezos's space venture, over SpaceX due to a rivalry between Bezos and Elon Musk, the founder of SpaceX.

Previously, Amazon had announced contracts with three other rocket companies, including Blue Origin. However, these rockets have yet to launch, and with a milestone to place half of its planned 3,236 satellites into orbit by July 2026 under its Federal Communications Commission license, Amazon is facing time constraints.

SpaceX's Starlink satellite internet service is already operational and rapidly expanding its reach with approximately 5,000 satellites in orbit. On the other hand, Amazon launched its first two prototype satellites in October, and the company states that they are performing as expected, validating the key technologies necessary for their network.

Both Amazon's Kuiper and SpaceX's Starlink services aim to provide internet connectivity to remote areas lacking reliable access to broadband. As part of the contract, Amazon stated that the launches on SpaceX will occur in 2025. The company emphasized the successful track record of SpaceX's Falcon 9 rocket, which has completed over 270 launches to date.

To compete with SpaceX, Amazon has committed to investing $10 billion in its Kuiper project. Last year, it announced plans to use various rockets for its satellite launches, including Blue Origin's New Glenn, United Launch Alliance's Vulcan, and Arianespace's Ariane 6. However, all three rocket options have encountered delays, complicating Amazon's time-sensitive situation.

The lawsuit filed by an Amazon shareholder alleged that the company breached its fiduciary duty by failing to consider SpaceX for the launch contracts, given its affordability and reliability. The lawsuit also claimed that the rivalry between Bezos and Musk played a role in excluding SpaceX from the process.

In a previous interview with The Washington Post, Dave Limp, then Amazon's senior vice president for devices and services, expressed openness to working with SpaceX, acknowledging their track record. Limp mentioned that while the Falcon 9 may not meet their full capacity needs, Amazon could explore options such as the Falcon Heavy or Starship, with greater lifting capabilities.

With the successful flight of its two prototypes, Amazon remains optimistic about the future of its Kuiper project. Rajeev Badyal, vice president of technology for Project Kuiper, stated that the progress made so far validated their original vision and architecture. However, Amazon acknowledges the challenges of scaling up for mass production and recognizes that there is still much hard work ahead.

As Amazon and SpaceX forge this new partnership, the competition in the satellite internet industry intensifies, paving the way for expanded internet access to remote areas in the coming years.