Shares in Amazon (AMZN) are up on Tuesday as the Magnificent-7 stock has reportedly agreed to acquire satellite company Globalstar (GSAT). The latter’s stock is also up following the news, as Amazon looks to challenge SpaceX’s (SPAX.PVT) Starlink directly. Per a press release, Amazon has ambitions to deploy 3,200 satellites ​in the next three years and launch its own internet service.

The deal is designed to turbocharge Amazon’s Project Kuiper satellite broadband initiative. Presently, tech companies are pouring billions of ‌dollars into capturing the lucrative market for satellite-based connectivity, but it will be a tall order to match Starlink’s 10,000-unit-strong network. Through the deal, Amazon adds Globalstar’s two dozen satellites to its existing network of more than 200.

Globalstar’s satellite network is designed for reliable, low-data connections ​directly to mobile devices, or Direct-to-Device (D2D). The deal will help Amazon deploy D2D from 2028, the companies said. Furthermore, Amazon had already signaled aggressive infrastructure ambitions, with $200 billion in capex planned for 2026, primarily AI-related. Folding Globalstar’s assets into that spending plan accelerates the Kuiper roadmap considerably.

For Globalstar (GSAT), the stock has also seen a 273% gain over the past year, making today’s 10% climb feel less like a surprise and more like a confirmation of what the market has been pricing in for months. The acquisition validates Globalstar’s spectrum and satellite assets at a premium that investors had long suspected was coming. As for Amazon, the stock is on an upward climb after struggling to start the year, now up 9% YTD after its 4.8% rally Tuesday.