Google Offshoot Challenges SpaceX's Starlink, but Is Amazon's Kuiper the True Rival?

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The world of global broadband internet could soon see a new player with Taara, which was launched this month as part of Alphabet, Google’s parent company. Alphabet However, Elon Musk’s satellite service Starlink, which is operated by SpaceX, has a significant advantage since Taara is still looking for funding. Amazon.com bolsters its Kuiper satellite service, and Europe’s Eutelsat seeks to gain from geopolitical developments.

As part of its new approach to bring research initiatives into the market under what they call "Moonshots," Alphabet is planning to spin off Taara. This company specializes in developing high-speed internet technology using lasers. Although several of Google’s research efforts have successfully entered the business world, like Waymo with autonomous driving vehicles, many require additional funding from external sources.

Alphabet will hold a smaller share of Taara, an initiative focused on delivering rapid internet access in remote regions. Currently, Taara’s operations span across 12 nations.

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"We have come to understand that for many of the innovations we develop, there’s significant value in venturing just beyond the boundaries of the Alphabet organization,” said the head of Alphabet X research. the Verge They will have the ability to swiftly connect with market capital, attract strategic investors, and typically expand more rapidly through this method.

Additionally, Series X Capital has become a new investor in Taara.

At the recent Mobile World Congress held in Barcelona, the firm introduced its advanced chip. This new component utilizes imperceptible light rays for transmitting high-speed data via the atmosphere, as reported. Fierce Wireless report .

However, Musk's Starlink holds a significant advantage.

The SpaceX IPO Might Bolster Musk's Fortunes

A recent tweet from Musk on X, previously known as Twitter, reveals that Starlink boasts more than 5 million subscribers across 125 nations, an increase from the 4.6 million reported at the end of 2023. The company is also looking to expand into India, which represents a significant potential market.

The parent company SpaceX has struck deals with two major Indian telecommunications firms, Reliance Jio and Bharti Airtel, to introduce Starlink services.

In total, Starlink provides its services across more than 100 nations and manages around 7,000 Low Earth Orbit (LEO) satellites. Its ultimate goal is to have approximately 40,000 LEO satellites operational in the long term.

Despite the financial issues faced by social media platform X and the recent challenges encountered by the electric car manufacturer Tesla , Musk might receive a fresh financial injection from a SpaceX initial public offering. Analysts also suggest another option: SpaceX could potentially spin off Starlink, leading to a separate IPO. Musk co-founded PayPal Holdings , another public company.

According to Eversky ISI analyst Mark Mahney in a recent analysis, Amazon currently presents the greatest challenge to Starlink.

Mahaney stated that Kuiper is the sole plausible contender.

Kuiper is also developing a Low Earth Orbit (LEO) satellite constellation. Additionally, Project Kuiper intends to utilize a system of terrestrial antennas along with fiber-optic network links to provide its services. However, the deployment of Kuiper’s satellites has faced delays. The company relies on Amazon's Blue Origin for launching these satellites.

Starlink Financial Challenges

According to analysts, both Starlink and Amazon’s Kuiper project are grappling with financial hurdles. The anticipated operational lifespan for these Low Earth Orbit satellites is between 5 to 7 years, after which replacements become necessary.

At the same time, Musk's Starlink service might encounter political repercussions due to the Tesla CEO's involvement with the Trump administration’s cost-saving DOGE initiative. Analysts have been informed by Eutelsat that they may see increased profits in Ukraine as well as other nations.

Moreover, Google discontinued Loon in 2021, an initiative designed to deliver internet connectivity to distant regions through the use of high-altitude balloons.

Other initiatives at Alphabet’s innovation lab encompass Chorus, which develops supply chain sensors; Tapestry, an entity focused on electric grids; Isomorphic Labs, aimed at advancing pharmaceutical development; and Tidal, dedicated to safeguarding oceans.

On the stock market today Google's share price dropped by 1.4% to $162.69.

The value of Google shares has dropped by 13% in 2025. Amazon’s stocks have decreased by 8%, whereas Tesla’s shares have fallen by 32%.

Follow Reinhardt Krause on X, previously known as Twitter. @reinhardtk_tech For information about advancements in artificial intelligence, cybersecurity, and cloud computing.

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