Amazon and AT&T announced a sweeping strategic partnership on February 4, 2026, combining orbital satellite capabilities with terrestrial fiber infrastructure in a direct challenge to SpaceX.
The agreement centers on Amazon Leo, the newly rebranded commercial arm of Amazon’s Project Kuiper, which will serve as a primary satellite connectivity layer for AT&T’s business and public safety customers.
The deal goes far beyond basic internet access, integrating AWS cloud services deeply into AT&T’s broader network architecture and migrating major AT&T workloads to AWS hybrid cloud platforms.
High-capacity AT&T fiber will connect AWS data centers as part of a “fiber-to-space” ecosystem designed to eliminate domestic connectivity dead zones across the United States.
The partnership positions the two companies as a unified counterweight to Starlink, betting on a high-integration model rather than trying to match SpaceX’s satellite count alone.
AT&T gains an immediate resilience layer for its FirstNet public safety network, ensuring first responders maintain connectivity even when terrestrial towers fail during natural disasters or emergencies.
For Amazon, the deal secures a large and guaranteed revenue base for its LEO constellation as the company works through the logistical challenges of deploying its planned 3,236-satellite array.
Investors responded positively to the announcement, sending AT&T shares up 1.5% on Wednesday, February 4, reflecting confidence in the long-term commercial potential of the agreement.
The announcement sent shockwaves through the broader satellite sector, with shares of AST SpaceMobile falling 12% and Globalstar dropping 8% on fears of intensifying competition.
Starlink launched in 2015 and spent its first decade building an essentially uncontested lead, using SpaceX’s reusable rockets to reduce launch costs far below what any competitor could match.
Starlink’s connectivity business generated $11.39 billion in revenue and $4.42 billion in operating income in 2025, making it the only profitable division operating inside SpaceX.
Project Kuiper remains in its early stages relative to Starlink’s existing orbital fleet, and any delays in Amazon’s launch schedule could slow AT&T’s rollout of the enhanced services the deal promises.
