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Amazon Leo VP Rajeev Badyal

Amazon Leo VP Rajeev Badyal Bloomberg/Getty Images

Amazon's satellite internet chief sent a memo to staff addressing last week's dramatic Blue Origin rocket explosion, which threatens to disrupt the internet giant's most important space project.

The explosion occurred Thursday during a hot-fire test of Blue Origin's New Glenn rocket at Cape Canaveral. The rocket erupted into a massive fireball on the launch pad ahead of a planned mission that was expected to carry some of Amazon's operational internet satellites.

No injuries were reported, but the blast appears to have caused significant damage to Blue Origin's launch infrastructure. The company called the incident an "anomaly," and founder Jeff Bezos later described it as a "very rough day."

The explosion could complicate Amazon's satellite internet ambitions. The company is building a constellation of thousands of satellites to compete with SpaceX's Starlink and is counting on Blue Origin's New Glenn rocket to get them into orbit.

Elon Musk's SpaceX controls the majority of the world's rocket launch capacity, which has helped Starlink leap far ahead in providing internet satellite services. Blue Origin, a side project started by Amazon founder Bezos more than 25 years ago, has struggled to match these capabilities.

If Blue Origin's New Glenn rocket operation is sidelined for months, that could slow Amazon's launch schedule at a critical time, giving Starlink more time to extend its lead. About 30% of Amazon's satellites were slated to be deployed via New Glenn rockets under existing launch contracts, according to an Amazon spokesperson.

In an email to Amazon employees, Rajeev Badyal, the VP overseeing Amazon's Leo satellite program, cautioned that it was too early to speculate about the cause of the Blue Origin explosion or its potential effects, adding that such challenges are an expected part of spaceflight.

"I've been in this business for a long time and it's worth saying: Spaceflight is hard, and setbacks happen," Badyal wrote. Business Insider obtained a copy of his memo.

Badyal sought to reassure employees that Amazon's satellites were not destroyed in the explosion. He said the satellites "were not on the vehicle" and remained secure at the company's processing facility at Kennedy Space Center.

He also stressed that Amazon's broader launch strategy remains intact. The company has contracted with multiple providers, including United Launch Alliance and ArianeSpace, and Badyal said the team's focus on upcoming launches won't change.

"New Glenn is just one vehicle in our lineup," he wrote. "Our mission hasn't changed, our commitment to our customers and delivering service hasn't changed."

An Amazon spokesperson told Business Insider that the company's initial service rollout plans remain unchanged and that testing of the Leo network continues to expand.

Amazon has secured more than 100 launches for the Leo satellite internet program, with New Glenn accounting for less than a quarter of those missions, the spokesperson added.

Here's the full copy of the email:

Team,By now, most of you have probably seen the news: Earlier tonight, Blue Origin experienced an anomaly during a hotfire test of its New Glenn vehicle that was slated to fly our first Leo mission (LN-01).It's too early to speculate on root cause or other downstream effects, but we do know that all Amazon and Blue Origin personnel have been accounted for and everyone is safe with no injuries. That's the most important thing.And since there have been questions here, folks should know that our satellites were not on the vehicle — they remain secure at our processing facility at Kennedy Space Center and were never integrated with the rocket.I've been in this business for a long time and it's worth saying: Spaceflight is hard, and setbacks happen. Jeff has already said that Blue will rebuild and get back to flying. I believe it, and we'll be with them each step of the way.In the meantime, I want you to know that our mission hasn't changed, our commitment to our customers and delivering service hasn't changed, our focus on the upcoming ULA and ArianeSpace launches hasn't changed and our confidence in this team and program hasn't changed. New Glenn is just one vehicle in our lineup, and important we stay focused on the mission ahead.Thank you for everything you do.Rajeev

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Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail operations, AWS, Alexa, and its secretive internal work culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene broke a story uncovering Amazon’s practice of deceptively enrolling customers in Prime and deliberately making cancellation difficult. A year later, the Federal Trade Commission sued the company, citing his reporting. That case culminated in a record $2.5 billion settlement in 2025.His reporting has earned multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at ekim@businessinsider.com, or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely. ExpertiseAmazon, Jeff Bezos, Andy Jassy, e-commerce, and cloud computing.Popular ArticlesAmazon:Internal Amazon emails give an exclusive look at how CEO Andy Jassy has started to run the company, with obsessive attention to the retail business and what some employees feel is micromanagingAndy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for Jeff Bezos' successor, who built AWS into a $40 billion business.Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.Inside Amazon's flailing brick-and-mortar ambitions: missed projections, pressure to cut costs, and a war with Whole FoodsInside Amazon's complex employee-review system, where workers feel left in the dark and managers expect to give 5% of reports bad reviewsAfter 28 years, 'Day 2' finally arrives at AmazonAWS, Alexa, healthcare:Inside Amazon's struggle to break into the lucrative market for SaaS business applications, including an internal pitch to buy $38 billion HubSpotInside Amazon's struggle to crack Nvidia's AI-chip dominanceAmazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortagesAmazon is gutting its voice assistant, Alexa. Employees describe a division in crisis and huge losses on 'a wasted opportunity.'Amazon is working on a new 'Remarkable Alexa,' but internal politics and technical issues plague the projectAmazon projected huge losses from its healthcare business in 2024, but strong sales growth, internal document reveals

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