In a significant turnaround, Astra Space, a startup that went private again earlier this year, has landed a major contract with the Defense Innovation Unit (DIU) worth up to $44 million. The contract, awarded under the Novel Responsive Space Delivery (NRSD) program, will support the development of Astra's Launch System 2, designed for rapid and ultra-low-cost launches.

This new funding is a vote of confidence in Astra, which had struggled to materialize its ambitious plans to mass-produce small, cheap rockets capable of executing hundreds of missions per year. Despite facing setbacks, including failed launches and a pivot to a new rocket design, Astra's proposal impressed the DIU.

The contract's goal is to demonstrate one or more capabilities, including delivery through space from one orbit to another, orbital return from space to a precise location on Earth, or through a specific orbit or trajectory in space. Astra is currently in the initial phase of refining its concept of operations, with the potential to progress to additional phases for mission demonstrations.

This development is significant not only for Astra but also for the space tech industry, as it signals continued innovation and investment in the sector. The DIU has already awarded two other contracts under the NRSD program, to the Spaceport Company and Stoke Space, highlighting the growing interest in point-to-point space cargo delivery and time-sensitive operations.