Low Earth orbit is drawing SpaceX, Nvidia in investment race: Here's why

Low Earth orbit is seeing a surge in investments as companies like SpaceX, Nvidia and Amazon expand satellite networks, driving new business opportunities

A fresh competition is taking shape in space, focused on controlling space-based infrastructure that is becoming essential to everyday life.

 

Low Earth orbit (LEO), once a specialised zone used mainly for scientific missions, is now turning into a highly valuable domain that supports communication, security and global connectivity, CNBC reported.

 

What is low Earth orbit and why it matters

 

According to Nasa, low Earth orbit refers to the region up to 2,000 km above the planet. Satellites in this zone are closer to Earth, allowing them to send and receive data faster, reduce delays and lower launch costs.

 

 

Unlike satellites placed in higher orbits such as medium Earth orbit (MEO) or geostationary orbit (GEO), LEO satellites do not remain fixed over one location. Instead, they move around the planet and operate in large coordinated groups known as constellations to ensure continuous global coverage.

 

This advantage has made LEO a key backbone for navigation systems, telecommunications networks, defence operations and internet access worldwide.

 

Investment surge and strategic importance

 

Investment in the LEO ecosystem has risen sharply. Industry estimates suggest funding crossed $45 billion in 2025, up from less than $25 billion the previous year, CNBC reported.

 

The most prominent player in this space is SpaceX, which operates the Starlink network. The constellation already includes over 9,500 satellites and continues to expand rapidly. The company is also exploring ambitious ideas such as orbital data centres powered by solar energy, the news report said.

 

Other technology giants are also stepping in. Nvidia recently introduced a platform designed to bring artificial intelligence capabilities into space. CEO Jensen Huang said space-based computing could enable smarter spacecraft and advanced data processing directly in orbit.

 

Amazon is also building its own satellite network under Project Kuiper, with plans to deploy over 3,000 satellites. Blue Origin, founded by Jeff Bezos, is also preparing a large satellite rollout expected to exceed 5,000 units by 2027.   

 

Europe and China step up efforts

 

In Europe, Eutelsat is expanding its OneWeb constellation, which already has over 600 satellites. France has backed the effort with significant funding, aiming to build a strong competitor to US-led networks, the news report said.

 

China is also planning over 200,000 satellites spread across multiple constellations.

 

A long-term growth story

 

Investment firm Space Capital estimates that over $400 billion has been poured into the space economy since 2009. CEO Chad Anderson believes the industry is still in the early stages of a long-term infrastructure cycle, the news report stated.

 

He noted that more space companies are entering public markets, and a potential listing of SpaceX could become a turning point that attracts wider investor interest.

 

Regulation struggles to keep pace

 

Despite rapid growth, regulation remains a major concern. Existing rules were designed for a simpler space environment dominated by government missions and fewer satellites.

 

Global frameworks such as the Outer Space Treaty make countries responsible for activities in space, while the International Telecommunication Union manages spectrum use to prevent signal interference.

 

In the United States, agencies like the FCC handle licensing, while the Federal Aviation Administration oversees launches and re-entry operations.

 

However, experts say these systems are outdated. Legal specialists said that rules built for predictable, slower-moving satellites in higher orbits may not work in the fast-changing LEO environment, the news report said.

 

The road ahead

 

As private companies become more involved, space activity is moving away from government-led missions to business-driven operations. This shift brings new opportunities, but also some risks.

 

Experts say satellites in low Earth orbit (LEO) could help connect billions of people and reduce the digital gap. However, they also caution that without better rules and global coordination, the fast growth of this sector could lead to safety, security, and sustainability concerns, the news report said.