Privatizing the Stars

We find ourselves in an interesting position in space exploration: a handful of billionaire-backed private corporations have become dominant players within the field. To understand this peculiar situation, we must go back half a century to the beginning of the Space Race: the rivalry between Soviets and Americans that centered on reaching the moon. In 1949, the Bumper-WAC rocket, a project facilitated through the Jet Propulsion Laboratory (JPL)’s use of a German V2 rocket, became the first man-made object in Space (NASA). This achievement pulled the United States ahead in the Space Race. However, a decade later in 1957, Soviet-launched Sputnik 1 became the first artificial satellite to orbit the earth, and four years later, Soviet soldier Yuri Gagarin became the first human in space aboard Vostok 1 (Encyclopedia Britannica). These two achievements by the Soviet Union spurred on the Space Race. During the 1960s, NASA received nearly 5 billion dollars in funding, equivalent to 51 billion dollars today, while the Soviet Space Program received similar amounts of monetary support (Rogers). In 1969, eight years after Gagarin’s flight, NASA, in its Apollo 11 mission, sent the first-ever humans to the Moon, effectively winning the Space Race (Encyclopedia Britannica). The crew consisted of Neil Armstrong, Buzz Aldrin, and Michael Collins; the former two astronauts set foot on the Moon while the latter piloted the command module that orbited around the natural satellite.

The end of the Space Race also meant that the national governments greatly reduced funding given to space agencies: while nearly 4.41% of the United States annual budget was spent on NASA in the 1960s, by the turn of the century, that figure had dwindled to 0.72% (Rogers). There have been meaningful achievements by NASA since, but the accomplishments during the period of relatively low funding were not as impressive as during the Space Race. By the turn of the century, the space exploration scene had become wide open for privately-owned companies to shoot for the stars.

Of the numerous companies currently involved in space exploration, three major players have emerged as forerunners, all privately owned by billionaires: SpaceX, Virgin Galactic, and Blue Origin, owned respectively by Elon Musk, Richard Branson, and Jeff Bezos. Blue Origin was founded first in 2000, with SpaceX and Virgin Galactic being established soon after in 2002 and 2004 (Watters). News organizations such as Bloomberg and Reuters have dubbed the three companies a “billionaire Space Race.” But while this name rings true in certain respects, the three companies are not locked in a cold war but are rather focusing on different aspects of space exploration; as their target consumer base differs substantially, these three companies are not necessarily competitors.

SpaceX is the largest aerospace company in the world as of August 2024, with a market valuation of over $150 billion. Musk, one of the co-founders of the company, currently retains a 42% equity stake while holding nearly 80% of voting rights (Reuters). The company is focused on spaceflight to distances within Earth’s orbit as well as harnessing satellite constellations for telecommunications. Its most ambitious business is interplanetary spaceflight and the colonization of Mars (SpaceX).

A major area of investment for SpaceX has been travel to the International Space Station and more generally low Earth orbit (LEO) through the development of its Dragon Spacecraft (SpaceX). It has become the first private company with the capability to take seven astronauts per trip. After the conclusion of NASA’s Space Shuttle program in 2011, the program had relied on Russian-made Soyuz spacecraft to send American astronauts into space (SpaceX). However, SpaceX’s Dragon spacecraft has allowed NASA to send astronauts to the ISS on American-made spacecraft once again. SpaceX is the only company actively bringing American astronauts to the ISS, though Boeing is also under contract to do so starting from 2024 (SpaceX, Boeing).

Moreover, SpaceX has also branched out into the satellite constellation industry through its subsidiary Starlink (SpaceX). Through thousands of satellites in LEO and ground transceivers provided to customers, the service provides internet connectivity to even the most remote locations. While the service is currently available in 54 countries, provided by roughly 5,000 satellites, SpaceX plans to launch up to 12,000 satellites and is aiming for global connectivity (SpaceX). These satellites have been used to provide internet connection to Ukraine during the ongoing Russian invasion.

However, SpaceX’s main focus lies in developing rockets through its Falcon series aimed at interplanetary travel. In 2006, SpaceX successfully launched the Falcon 1 into orbit, making it the first privately-developed liquid-fueled rocket to reach space (Smithsonian). Soon after, the Falcon 9 and the Falcon Heavy were launched in 2015 and 2018; they are the two models currently in use. Collectively, the two rockets have had 256 total launches and 192 total reflights (SpaceX). The Falcon 9 can tow 17,400 kg into Low Earth orbit, while the Falcon Heavy can tow 63,800 kg into LEO and theoretically 16,800 kg to Mars (SpaceX). SpaceX is also currently developing its newest rocket, the Starship, which, when completed, would be fully reusable and capable of lifting a load of 150 tons (150,000 kg) (SpaceX). The company has labeled the rocket as “a fully reusable transportation system designed to carry both crew and cargo to low Earth orbit, the Moon, Mars and beyond.” (SpaceX)

While SpaceX largely makes deals with governmental organizations and other private companies, Virgin Galactic, on the other hand, offers tickets to space for the general public. The company, valued at $950 million as of August 2023, is the smallest of the three companies engaged in the Billionaire Space Race in terms of market cap. Co-founder Branson currently retains 11.9% of the company through his holdings in Virgin Limited (CNBC). Virgin Galactic focuses on providing the experience of space travel to the ordinary public by launching flights from Spaceport America in New Mexico (Virgin Galactic).

Virgin Galactic’s fleet consists of a spacecraft with two distinct parts: the Virgin MotherShip Eve (VMS Eve) and the Virgin SpaceShip Unity (VSS Unity) (Virgin Galactic). When launched, the VMS Eve and the VSS Unity are initially attached; at a certain point, they separate as the Unity ascends to space and Eve lands back on Earth for reuse (Virgin Galactic). To date, there have been two successful launches of Virgin’s spacecraft. Although both flights crossed into the region that the United States defines as space—80.5 kilometers above sea level—neither has been able to cross the Karman line—100 km from sea level—which the FAI (World Air Sports Federation) and most countries and international organizations define as the boundary for space (CNN). The VMS Eve and VSS Unity are unique in that they do not appear as traditional rockets but rather resemble small scale planes. Virgin Galactic has sold 800 tickets for a 75-minute trip to Space to the public for $450,000 per spot (Virgin Galactic). While Branson has also shown interest in providing transportation for satellites into Low Earth orbit through his venture Virgin Orbit, the company has since befallen into bankruptcy after a failed launch (The Guardian).

The last of the three companies currently engaged in the billionaire Space Race is Blue Origin. The company is completely owned by founder and current CEO Jeff Bezos and is estimated to be worth around $35 billion. Unlike the two other space companies, Blue Origin’s mission revolves around the transportation of harmful industries on Earth to space in order to establish a more sustainable future on our home planet (Blue Origin).

Blue Origin’s flagship fleet comprises three different spacecraft: the New Shepard, the New Glenn, and the Blue Moon (Blue Origin). The New Shephard is named after the first American in space, Alan Shepard, and mainly transports tools and apparatus used in scientific research as well as astronauts to space stations in Low Earth orbit (Blue Origin). Unlike the VSS Unity, it is able to cross the Karman line (Blue Origin). The second spacecraft within the fleet, the New Glenn, is named after John Glenn, the third American in Space, and was created to send cargo further than its counterpart (Blue Origin). The New Glenn is able to send cargo up to geosynchronous orbit, which stands at approximately 35,786 km above sea level (NASA). This orbit is unique as it allows a satellite to keep pace with the planet and is important for satellites tasked with weather forecasting or monitoring a specific area on Earth. The last spacecraft in Blue Origin’s fleet is called the Blue Moon, and it is not a rocket but rather a lunar lander that can access the moon’s surface. Currently, it is under NASA’s NextSTEP-2 Appendix P Sustaining Lundar Development (SLD) contract, which means it can provide NASA the ability to send astronauts to the surface of the moon (NASA).

SpaceX, Virgin Galactic, and Blue Origin are continuing humanity’s exploration of space that was started by federal governments in the 1950s. Their technologies have begun to rival those of national agencies, and they have become key partners with said agencies in their operations. The emergence and prevalence of privately-owned space agencies has not been welcomed by all, however. Critics such as Ollie A. Williams have expressed dissent regarding the large sums of money billionaires are investing into the cosmos as well as the environmental consequences of rockets being launched into space. These concerns stem from the fundamental question of whether it is worth it for humanity to invest in space, or more broadly, any frontier. However, the underlying quandary regarding the exploration of frontiers is far too complicated to answer in this article alone.