Amazon Acquires Globalstar for $11.6B While AWS Hits $15B AI Run Rate
Amazon agreed to acquire Globalstar for $11.57 billion to secure spectrum licenses and direct-to-device credentials, positioning itself as a stronger competitor to Starlink in enterprise and IoT markets. Concurrently, AWS reported a $15 billion annualized AI services run rate, signed Fox as its preferred AI cloud partner, plans to deploy over 1 million Nvidia GPUs, and saw its custom chip unit reach a $20 billion run rate.
1. Strategic Satellite Acquisition
Amazon moved to acquire Globalstar for $11.57 billion, gaining valuable spectrum licences, device-to-device credentials and satellite expertise. This deal accelerates its Amazon Leo initiative, enhances enterprise and government connectivity offerings, and directly challenges SpaceX’s Starlink by bundling satellite IoT services into its AWS ecosystem.
2. AWS Secures Major Media Partnership
Fox named AWS its preferred provider for AI workloads on its FOX One platform, expanding an existing cloud relationship. AWS will supply Elemental MediaLive, MediaPackage, MediaTailor and AI tools to improve content delivery, streamline operations and support monetization in media and entertainment.
3. Robust AI Infrastructure Expansion
AWS reported a $15 billion annualized run rate for AI services and plans to add over 1 million Nvidia GPUs through 2027. Its custom chip business doubled to a $20 billion run rate in three months, underpinning estimates that full GPU deployment could drive roughly $100 billion in annual revenue.
4. Retail Segment Growth
Amazon’s grocery business surpassed $150 billion in US gross sales in 2025, making it the country’s second-largest grocer. This momentum supports overall revenue diversification and highlights Amazon’s expanding footprint beyond e-commerce and cloud services.