What’s the most exciting investing story of 2026? While there are several contenders, I’d say the impending initial public offering of SpaceX ranks near the top of the list. The space technology company founded by Elon Musk is preparing for a valuation in the ballpark of $2 trillion, which would make it by far the highest-valued IPO stock ever.

The biggest reason for SpaceX’s expected astronomical market cap is its Starlink satellite internet service. Starlink generated revenue of $15 billion to $16 billion with profits of around $8 billion last year, according to Reuters.

But the seemingly easy money for Starlink may be only temporary. SpaceX could soon run into a $2.7 trillion roadblock named Amazon (AMZN +0.26%).

Amazon enters the space race

Amazon announced in 2019 plans to deploy a large constellation of satellites to offer broadband internet service worldwide. The company launched its first satellites last year and now has 180 satellites in orbit. Its initial design calls for more than 3,000 satellites.

This satellite internet service business was originally named Project Kuiper (after the region of icy objects in the outer solar system called the Kuiper belt. However, Amazon rebranded the unit as Amazon Leo (a nod to the acronym for low earth orbit) in November 2025.

Although Amazon Leo won’t begin providing widely available service until later this year, it has already lined up dozens of commercial customers. Amazon CEO Andy Jassy said in his company’s fourth-quarter earnings call that AT&T (T +0.47%), DirecTV Latin America, JetBlue (JBLU +6.53%), and Australia’s national broadband network are among the early customers. He added that Leo has “many more on the way.”

Last week, Amazon announced plans to acquire Globalstar (NASDAQ: GSAT) for around $11.6 billion. The deal will enable Amazon Leo to offer direct-to-device services (satellite connectivity for mobile phones and other cellular devices). Amazon simultaneously announced an agreement with Apple (NASDAQ: AAPL) to provide satellite services for iPhone and Apple Watch devices.

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Advantage SpaceX — for now

SpaceX’s Starlink has a significant head start in the satellite internet services market. It already has more than 7,800 satellites in low Earth orbit. Musk’s company has ironed out some of the early stage wrinkles that Amazon Leo will likely face over the next couple of years. Starlink has also already built a substantial customer base.

However, make no mistake: Amazon Leo will be a formidable rival to SpaceX. The Globalstar acquisition and Apple agreement were clearly shots across Starlink’s bow.

The space race between these two companies could turn into a capital race. If so, Amazon could chip away at SpaceX’s lead. While SpaceX hopes to raise a boatload of cash with its IPO, Amazon already has $123 billion in cash and can easily add to that.

SpaceX also won’t be able to match Amazon’s ability to offer bundling deals to attract customers. Amazon Leo already offers businesses the option to connect to the AWS cloud. Amazon could choose to subsidize hardware costs by bundling Leo with AWS for corporate customers. What about retail customers? It’s not hard to envision Amazon bundling Leo with Prime.

The coming collision

SpaceX could still emerge as the winner of the coming collision with Amazon. A record IPO for the space stock this summer should help improve its chances of success.

However, Amazon’s entry into the satellite internet market will tighten this part of the space race significantly. Investors considering buying shares of SpaceX at or immediately after its IPO should keep the intensifying competitive landscape in mind.

Maybe Amazon won’t be a full-blown roadblock for SpaceX. But it will almost certainly be a big speed bump.