Amazon to Acquire Globalstar for $11.57bn While AWS AI Revenues Hit $15bn Run Rate
Amazon will acquire satellite operator Globalstar for $11.57bn, securing spectrum licences and IoT customers to challenge Starlink’s LEO network. AWS hit a $15bn AI services run rate in Q1 and plans to deploy over one million Nvidia GPUs by 2027; its custom chip unit doubled to a $20bn run rate, reinforcing bullish views.
1. Acquisition of Globalstar
Amazon announced plans to buy Globalstar for $11.57bn, adding valuable spectrum licences and existing IoT contracts to its portfolio. The move accelerates Amazon’s LEO connectivity ambitions and positions its service as a direct rival to Starlink in enterprise and government markets.
2. AWS AI Performance Metrics
In Q1 2026, AWS reported a $15bn annualized run rate for AI services and unveiled a plan to install over one million Nvidia GPUs by the end of 2027. The cloud unit’s custom chip division also doubled its revenue run rate to $20bn, underscoring strong internal demand and potential external sales.
3. Market Implications and Outlook
The Globalstar deal represents Amazon’s second-largest acquisition and could reshape satellite connectivity competition upon closing. Combined with robust AWS AI growth—highlighted by Barclays’ bullish forecasts—the strategic moves aim to bolster Amazon’s revenue diversification and long-term valuation trajectory.