Amazon Enters Satellite Market with $11.57B Globalstar Deal, AWS Hits $15B AI Run Rate
Amazon agreed to buy Globalstar for $11.57bn, securing satellite licenses and positioning itself against SpaceX’s Starlink with closure expected in 2027. AWS hit a $15bn AI services run rate and its chip unit reached a $20bn run rate, while Fox selected AWS as its preferred AI cloud provider.
1. Globalstar Acquisition Details
Amazon agreed to buy Globalstar for $11.57bn, securing D2D connectivity licenses and spectrum ahead of expected 2027 closing. The acquisition positions Amazon to challenge SpaceX’s Starlink in enterprise, government and IoT markets outside terrestrial networks.
2. AWS AI and Chip Run Rates
AWS reported a $15bn annualized AI services run rate and its custom chip business reached a $20bn run rate. The cloud unit plans to deploy over one million Nvidia GPUs through 2027 to support AI workloads.
3. Fox Picks AWS for AI Cloud
Fox will use AWS as its preferred provider for AI and media workloads on its FOX One streaming platform. AWS services including Elemental MediaLive, MediaPackage, MediaTailor and machine learning tools will power content delivery and monetization.
4. Strategic Implications and Risks
The Globalstar deal is Amazon’s second-largest acquisition at $11.57bn and carries integration risks from ageing satellite infrastructure and regulatory approvals. Successful execution could expand AWS’s ecosystem but delays or cost overruns may weigh on near-term financials.