Jeff Bezos, Andy Jassy Sued After Allegedly Snubbing Elon Musk in Satellite Deal

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The longstanding rivalry between Elon Musk and Jeff Bezos took an unexpected turn this week with a lawsuit filed Monday that alleges Amazon didn’t issue SpaceX a satellite contract due to the ongoing personal issues between the two men.

The suit was filed by Cleveland Bakers and Teamsters Pension Fund (CB&T) in the Delaware Court of Chancery against Bezos and other top executives at Amazon, including CEO Andy Jassy.

In the document, CB&T, an Amazon shareholder, said that executives there “consciously and intentionally breached their most basic fiduciary responsibilities” by not using SpaceX as a rocket launch provider in Amazon’s Project Kuiper initiative.

Project Kuiper is “an initiative to increase global broadband access through a constellation of 3,236 satellites in low Earth orbit (LEO)” that aims to bring broadband access to “unserved and undeserved” areas of the world—and also a direct rival to Musk’s Starlink, a satellite internet constellation operated by SpaceX.

The rocket launches purchased for Kuiper were provided by United Launch Alliance (ULA), Arianespace, and Blue Origin, which Bezos owns. SpaceX is currently the leading rocket provider in the world.

The suit alleges that had Amazon used SpaceX, the entire deal would have been much cheaper, therefore damaging shareholders in the process, and claims that Amazon’s leadership “excluded the most obvious and affordable launch provider, SpaceX, from its procurement process because of Bezos’ personal rivalry with Musk.”

Bezos, it must be assumed, could not swallow his pride to seek his bitter rival’s help to launch Amazon’s satellites,” the documents reportedly read.

Amazon, however, is rejecting the lawsuit and its claims.

The claims in this lawsuit are completely without merit, and we look forward to showing that through the legal process,” an Amazon spokesperson told CNBC.

The lawsuit reportedly shows screenshots of interactions on the app formerly known as Twitter between Bezos and Musk, underscoring their rivalry and Bezos’ original disdain with Musk after SpaceX was awarded NASA’s coveted $2.9 billion human lunar landing contract in 2021 that Bezos’ Blue Origin was eyeing.

Bezos sued NASA upon losing the contract and lost to the court, saying at the time that the ruling was “not the decision we wanted” but wished “full success for NASA and SpaceX on the contract” nonetheless.

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StartupNews.fyi is a leading global startup and technology media platform known for its end-to-end coverage of the startup ecosystem across India and key international markets. Launched with the vision of becoming a single gateway for founders, investors, and ecosystem enablers, StartupNews.fyi has grown steadily over the years by publishing tens of thousands of verified news stories, insights, and ecosystem updates, reaching millions of startup enthusiasts every month through its digital platforms and communities.

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Jeff Bezos, Andy Jassy Sued After Allegedly Snubbing Elon Musk in Satellite Deal

The longstanding rivalry between Elon Musk and Jeff Bezos took an unexpected turn this week with a lawsuit filed Monday that alleges Amazon didn’t issue SpaceX a satellite contract due to the ongoing personal issues between the two men.

The suit was filed by Cleveland Bakers and Teamsters Pension Fund (CB&T) in the Delaware Court of Chancery against Bezos and other top executives at Amazon, including CEO Andy Jassy.

In the document, CB&T, an Amazon shareholder, said that executives there “consciously and intentionally breached their most basic fiduciary responsibilities” by not using SpaceX as a rocket launch provider in Amazon’s Project Kuiper initiative.

Project Kuiper is “an initiative to increase global broadband access through a constellation of 3,236 satellites in low Earth orbit (LEO)” that aims to bring broadband access to “unserved and undeserved” areas of the world—and also a direct rival to Musk’s Starlink, a satellite internet constellation operated by SpaceX.

The rocket launches purchased for Kuiper were provided by United Launch Alliance (ULA), Arianespace, and Blue Origin, which Bezos owns. SpaceX is currently the leading rocket provider in the world.

The suit alleges that had Amazon used SpaceX, the entire deal would have been much cheaper, therefore damaging shareholders in the process, and claims that Amazon’s leadership “excluded the most obvious and affordable launch provider, SpaceX, from its procurement process because of Bezos’ personal rivalry with Musk.”

Bezos, it must be assumed, could not swallow his pride to seek his bitter rival’s help to launch Amazon’s satellites,” the documents reportedly read.

Amazon, however, is rejecting the lawsuit and its claims.

The claims in this lawsuit are completely without merit, and we look forward to showing that through the legal process,” an Amazon spokesperson told CNBC.

The lawsuit reportedly shows screenshots of interactions on the app formerly known as Twitter between Bezos and Musk, underscoring their rivalry and Bezos’ original disdain with Musk after SpaceX was awarded NASA’s coveted $2.9 billion human lunar landing contract in 2021 that Bezos’ Blue Origin was eyeing.

Bezos sued NASA upon losing the contract and lost to the court, saying at the time that the ruling was “not the decision we wanted” but wished “full success for NASA and SpaceX on the contract” nonetheless.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Editorial Team
StartupNews.fyi is a leading global startup and technology media platform known for its end-to-end coverage of the startup ecosystem across India and key international markets. Launched with the vision of becoming a single gateway for founders, investors, and ecosystem enablers, StartupNews.fyi has grown steadily over the years by publishing tens of thousands of verified news stories, insights, and ecosystem updates, reaching millions of startup enthusiasts every month through its digital platforms and communities.

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