Amazon.com Inc. (AMZN, Financials) is struggling to meet an ambitious U.S. government deadline for its satellite internet venture, Project Kuiper, according to a report by Bloomberg.
The company has completed only a few dozen satellites—far short of the 1,600 it needs to have in orbit by mid-2026 to satisfy a Federal Communications Commission requirement. That would represent half of Kuiper's planned 3,236-satellite network. To meet the timeline, Amazon would have to significantly accelerate its current production pace, which hasn't consistently reached one satellite per day, Bloomberg reported.
A launch scheduled for April 9 was scrubbed due to bad weather and pushed to April 28, adding to delays. The company says it's running its satellite plant near Seattle seven days a week with overnight shifts and aims to eventually hit five satellites a day.
Amazon has faced setbacks beyond weather. Faulty supplier parts and the decision to keep manufacturing in-house—despite limited experience in aerospace—have slowed progress. Bloomberg noted the company is building sophisticated, largely untested satellites, in contrast to SpaceX's earlier strategy of launching simpler hardware first.
While Amazon hopes to start delivering internet service later this year, Bloomberg reported that insiders believe it may need to seek an FCC extension. Political dynamics could complicate that. Elon Musk, CEO of SpaceX, is advising President Donald Trump, raising questions about regulatory impartiality. Amazon previously accused Trump of interfering with a Pentagon cloud contract, though the case was dropped after the contract was canceled.
Despite the hurdles, Amazon told Bloomberg it remains committed to increasing production and hitting its targets.
