Amazon's Leo network suffered a setback when Blue Origin was forced to ground its New Glenn rocket after an engine failed to achieve orbit during a Sunday test flight. The FAA halted further flights and opened an investigation, raising the possibility that Amazon may have to turn to SpaceX for launch services.

During the abort an engine did not generate sufficient thrust, leaving the payload stranded below its intended orbit, Blue Origin posted on X. FAA oversight is expected to extend the probe for several months, and analysts foresee a minimum three‑month grounding. Because New Glenn can loft more satellites per flight than Amazon’s other providers, the outage could compress the constellation’s build‑out.

Amazon currently fields about 240 satellites, dwarfed by SpaceX’s 10,000‑plus fleet. Earlier this year the cloud giant asked regulators for a two‑year extension to its July deadline to launch 1,600 satellites. It holds contracts for 13 SpaceX rides, but the bulk of its 102 booked launches sit with Blue Origin and United Launch Alliance.

Device chief Panos Panay told the FT the priority now is launch cadence, targeting about 700 satellites by mid‑year with up to three flights a month. Recent groundings of New Glenn and ULA’s Vulcan have already shaved days off the timetable, forcing Amazon to lean on Arianespace and ULA for upcoming lifts.