It seems as though $5.6 billion wasn't enough. That was the news from the US Space Force on Friday, when military officials announced they were tripling the maximum value of one of the service's National Security Space Launch contracts to $17 billion.
The expansion of the Space Force's National Security Space Launch (NSSL) Phase 3 contract comes as the Pentagon signals rising demand for military satellite launches. The NSSL program is set up to allow Space Systems Command, which oversees the Space Force's launch program, to select from a pool of launch providers for individual missions to deliver the military's satellites to orbit.
The NSSL program has two parts. Lane 1 covers the Space Force's more risk-tolerant missions, such as medium-lift launches with experimental payloads or rideshare missions carrying satellites for the Pentagon's surveillance or data relay constellations. Lane 2 includes higher-priority strategic missions, like the government's largest and most expensive spy satellites, or radiation-hardened communications satellites designed to survive a nuclear war.
It seems as though $5.6 billion wasn't enough. That was the news from the US Space Force on Friday, when military officials announced they were tripling the maximum value of one of the service's National Security Space Launch contracts to $17 billion.
The expansion of the Space Force's National Security Space Launch (NSSL) Phase 3 contract comes as the Pentagon signals rising demand for military satellite launches. The NSSL program is set up to allow Space Systems Command, which oversees the Space Force's launch program, to select from a pool of launch providers for individual missions to deliver the military's satellites to orbit.
The NSSL program has two parts. Lane 1 covers the Space Force's more risk-tolerant missions, such as medium-lift launches with experimental payloads or rideshare missions carrying satellites for the Pentagon's surveillance or data relay constellations. Lane 2 includes higher-priority strategic missions, like the government's largest and most expensive spy satellites, or radiation-hardened communications satellites designed to survive a nuclear war.
Seattle-area startups raised $2.7 billion in venture funding through the first half of 2026, across 163 deals, down about 40% from $4.5 billion in 210 deals during the same period a year ago.
The figures come from the recently released PitchBook-NVCA Venture Monitor report for Q2 2026. The decline in capital reflects fewer deals across the board in the Seattle region, with much of the funding going to a handful of large rounds for energy, cybersecurity, and space startups.
Here is the region’s top 5 for the second quarter, as tracked in the report:
Gradial raised $65 million for its agentic enterprise software platform.
Against the AI grain: In Q2 2026 specifically, startups in the Seattle area closed 85 deals totaling $1.5 billion. That was down from 101 deals and $2.3 billion in the same quarter a year ago, but up from Q1 2026, which PitchBook revised to 78 deals and $1.2 billion as part of its regular data updates.
Heavy infrastructure investments by Microsoft and Amazon have helped to establish the Seattle area as an AI hub, but the region’s pure-play AI startups, on the whole, aren’t seeing investment on the same scale as some of their peers in Silicon Valley and other tech hubs around the country.
That creates a disconnect with the larger U.S. venture capital market. AI companies accounted for 86% of all U.S. venture dollars in the first half of the year, according to the PitchBook-NVCA data.
Nationally, it was a record half: U.S. startups raised $412.7 billion through June, already surpassing the full-year record of $358.6 billion set in 2021. But the number is misleading. Deals of $100 million or more accounted for 87.5% of the total, and AI companies captured 86 cents of every venture dollar.
OpenAI and Anthropic alone absorbed roughly 43% of all global venture capital in the first half of the year, by one estimate. The Bay Area, home to both, pulled in $319 billion, about three times its H1 2025 total.
Strip out those two companies and the national picture looks very different. Seed funding fell 27% nationally in the first half, and first-time fund formation is on pace for its lowest year since 2016.
Regional trends: In that way, what’s happening in the Seattle area reflects the current realities of the market. However, the region is also slipping relative to its peers in the latest numbers.
Among the 10 largest U.S. metro areas for venture funding, Seattle ranked seventh by capital invested in the first half of the year, down from fifth in H1 2025. By deal count, the region was last in the top 10.
The data used in this analysis covers the Seattle-Tacoma combined statistical area (CSA), a broader regional boundary that includes communities beyond the core metro region.
Political climate: Washington’s shifting tax and economic landscape adds another variable.
The state now taxes capital gains at up to 9.9%, a new millionaires’ tax takes effect in 2028, and legislators this year floated taxing the federal QSBS exemption that startup founders and early employees rely on when they sell shares at exit. That bill didn’t pass, but generated enough alarm to cause a backlash from startup community leaders and investors.
Looking ahead: Blue Origin, Jeff Bezos’ Kent-based space company, is reportedly seeking up to $10 billion in what would be its first outside funding round. A deal that size would be larger than every other Seattle-area venture round this year combined.
Wally Funk, who in 2021 became the oldest woman to fly into space—60 years after she and 12 other women sought the same opportunity as NASA's original astronauts—died on Wednesday at 87 years old.
Funk was the last living member of the First Lady Astronaut Trainees (FLATs, or as they were later dubbed by the media, the Mercury 13), a group of women pilots who volunteered to go through the same physical and psychological tests as the United States' first spacemen.
Despite performing as well or better than their male counterparts, though, the Lovelace Woman in Space Program was conducted separately from NASA, and the space agency required that its astronauts be test pilots with jet time. The US military, however, did not accept women into its flight programs.
Blue Origin is raising $10 billion at a $130 billion pre-money valuation from Coatue Asset Management, Bezos himself, and other big-name investors, The New York Times reported.
The rocket company founded by Jeff Bezos, Blue Origin, is raising private capital, the DealBook newsletter reported early Wednesday.
According to the publication, the company is raising $10 billion, leading to a valuation of $130 billion. Coatue Management, a big asset manager, is expected to lead with a $4 billion commitment. Another $4 billion is expected to come from large institutional investors. And Bezos will contribute an additional $2 billion.
Founded in 2000, Blue Origin is seeking to become a global leader in spaceflight, developing a line of super heavy lift rockets, lunar landers, and plans for two megaconstellations. It is seeking to compete in the same areas—launch, telecommunications, data centers from space—as SpaceX.
Welcome to Edition 9.01 of the Rocket Report! Back in January, I wrote about the 20 launches and landings we were most excited about in 2026. The list included things that were, at the time, officially scheduled to occur this year. I also gave my own view of the probability of each of these events actually happening before December 31. Halfway through the year, we can only count one of the events as completed, and that was NASA's Artemis II mission in April. Many are now scheduled for next year, proving again that delays are a constant in the space industry. A couple of them—such as the launch of NASA's Roman Space Telescope—do appear to be on track to happen soon.
As always, we welcome reader submissions. If you don't want to miss an issue, please subscribe using the box below (the form will not appear on AMP-enabled versions of the site). Each report will include information on small-, medium-, and heavy-lift rockets, as well as a quick look ahead at the next three launches on the calendar.
Swift Boost Mission reaches orbit. A pioneering commercial mission to reboost the orbit of NASA's Swift astronomy satellite launched early Friday after attempts earlier in the week were thwarted by bad weather and a technical issue. The Link servicing satellite developed by Katalyst Space Technologies soared to orbit on the tip of a Northrop Grumman Pegasus XL rocket that dropped from the belly of a modified L-1011 jetliner over the remote Pacific Ocean. Mission managers called off two launch attempts Tuesday and Wednesday due to poor weather around the L-1011's staging base on Kwajalein Atoll in the Marshall Islands. On Thursday, "a launch vehicle issue temporarily prevented teams from deploying the rocket" after takeoff of the L-1011.
“To return to flight this year, we’re not rebuilding the same pad,” Blue Origin CEO Dave Limp said in an online update. Instead, the company will move ahead with a plan that it already had been working on for Cape Canaveral Space Force Station’s Launch Complex 36.
The concept of operations, or ConOps in rocket lingo, calls for a hybrid horizontal/vertical configuration for launch preparations. Blue Origin had already planned to employ the hybrid system for a second pad that’s currently in development for its super-sized 9×4 New Glenn rocket. Now the system will be used for the old pad as well as the new one, “creating a common ConOps across two pads,” Limp said.
In a post to X, Limp said the plan “has the added benefit of increasing our flight cadence.”
We're not rebuilding the same pad for New Glenn. We're moving to a horizontal/vertical hybrid configuration to get us flying again this year at 36A. We were already working on something similar for 9×4 at 36B. Let me explain what that means. We mate the stages horizontally in… pic.twitter.com/5I0f8GEojs
The explosion on May 28, which took place while Blue Origin was preparing its New Glenn rocket to launch 48 satellites for the Amazon Leo constellation, dealt a heavy blow to Blue Origin’s launch plans. The Federal Aviation Administration called a halt to launches until Blue Origin traced the cause of the blast and took corrective actions.
In today’s update, Limp said “early analysis points to the aft section of the first stage” as the source of the anomaly. He voiced confidence that the root cause would be found and fixed.
He said the blast destroyed the pad’s lightning tower, transporter-erector and hydraulic cylinders, “but we caught a lot of breaks, too, and intend to make the most of them.”
Limp reported that the launch complex’s Integration Facility, tank farm, vehicle access tower and water tower were all in good shape, and that reconstruction of the pad has started. Blue Origin has moved three New Glenn upper stages and a twice-flown booster nicknamed “Never Tell Me the Odds” out of the Integration Facility as part of the pad cleanup process, he said.
Limp said Blue Origin is “continuing to build vehicles at rate in our world-class manufacturing facilities, maintaining flight readiness, and preparing to come back stronger than before.”
“Our road to space doesn’t pause here. We will return to flight by the end of this year,” he wrote. “It’s worth it.”
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