Finance News

Bezos is providing to lift $ 2 billion in trade for a NASA astronaut lunar lander contract

Jeff Bezos holds aviation goggles that belonged to Amelia Earhart as he speaks during a press conference about his Blue Origins New Shepard flight into space July 20, 2021 in Van Horn, Texas.

Joe Raedle | Getty Images

Jeff Bezos, founder of Blue Origin, offered on Monday to fund billions in exchange for a NASA contract to build a lunar lander to land astronauts on the moon.

Bezos said Blue Origin will waive all payments of up to $ 2 billion from the National Aeronautics and Space Administration for the current and next two years in office. Blue Origin would also fund its own Boy Scout mission to low-earth orbit, according to the letter. In return, the company demanded a fixed price contract from the authorities.

“This offer is not a postponement, but a direct and permanent waiver of these payments. This offer allows time for government action to be taken, ”Bezos said in an open letter to NASA Administrator Bill Nelson.

NASA awarded SpaceX a single $ 2.89 billion contract with Elon Musk in April to build the next manned lunar lander as part of its Human Landing Systems program. Before selecting the winner of the competition, NASA SpaceX, Blue Origin and Dynetics awarded 10-month study contracts to work on lunar landers.

"Instead of this single-source approach, NASA should adopt its original competitive strategy," said Bezos. "Without competition, after a short contract period, NASA will find itself with limited options as it tries to negotiate missed deadlines, design changes and cost overruns."

Bezos, the founder and CEO of Amazon, started earlier this month with a trip into space on the first manned New Shepard rocket flight, a project of his company Blue Origin.

He and his fellow travelers hovered in weightlessness for a few minutes before their capsule returned and landed after 10 minutes and 10 seconds.

The launch of New Shepard marked a milestone in his vision of "creating a future where millions of people in space live and work to help the earth".

Right now, Bezos and his billionaire Richard Branson are the only two big entrepreneurs in the market taking tourists to the edge of space. Branson's Virgin Galactic, which also recently completed a crewed flight, has historically sold seats on its flights between $ 200,000 and $ 250,000 per ticket.

The tourism market is only one part of a space economy valued at no less than $ 420 billion. Its high standing, however, means it has a strong and far-reaching impact on the space industry, with investors often pointing to astronaut flights to fuel the excitement about the broader ramifications of the alien market.

Blue Origin has sold nearly $ 100 million worth of tickets for future passenger flights to the edge of space, Bezos said last week. The company is actively working to build more rocket boosters to fly more often at the "very high" rate Bezos is hoping for.

– CNBC's Michael Sheetz contributed to the coverage.

Did you like this article?
For exclusive stock selection, investment ideas and global CNBC livestream
Sign up for CNBC Pro
Start your free trial now

Related Articles