Axiom Space, the private space company behind NASA’s ambitious commercial space station and spacesuit projects, is grappling with significant financial challenges.
Founded in 2016 by billionaire Kam Ghaffarian and former NASA executive Michael Suffredini, Axiom based in Houston, has encountered serious problems as it tries to advance two major projects: developing a private space station in low-Earth orbit and creating spacesuits for NASA’s Artemis Program, which will eventually be used by astronauts on the Moon. According to Forbes, the company has had trouble raising sufficient funds to stay operational and has been experiencing payroll difficulties since early 2023.
Additionally, Axiom has fallen behind in payments to key suppliers like Thales Alenia Space, responsible for space station modules, and SpaceX, tasked with crewed launches.
“The lack of fresh capital has exacerbated long-standing financial challenges that have grown alongside Axiom’s payroll, which earlier this year was nearly 1,000 employees,” Forbes reports.
Sources familiar with Axiom’s operations indicated that Michael Suffredini, co-founder and CEO, ran Axiom more like a large government program than a startup with limited resources. His decision to rapidly expand the workforce to 800 employees by the end of 2022 led to “mass hiring so detached from product development needs that new engineers often found themselves with nothing to do.”
These financial difficulties have led to layoffs and strained relationships with suppliers. Thales Alenia Space, responsible for building pressure modules for Axiom’s space station, has expressed dissatisfaction over unpaid bills. Although Suffredini’s recent departure as CEO was officially framed as a personal decision, it is widely believed to be tied to performance issues.
Axiom’s financial woes raise serious concerns about its ability to deliver on its primary mission—building a commercial successor to the International Space Station (ISS). The company was initially formed with the vision of launching its first space station module by 2020, but that timeline has faced repeated delays. Currently, the first module is scheduled for launch no earlier than 2026. Moreover, Axiom’s initial plan for a four-module station by 2030 has been downsized to a smaller station with just two elements, which would have lower power and reduced commercial potential.
“The business model had always counted on having significant power for microgravity research, semiconductor production, and pharmaceutical production, plus supporting life in space,” a source told Forbes.
“The business model had to change… and that has continued to make it challenging for the company to get around its cash flow issues.”
Axiom is competing with companies like Blue Origin, Voyager Space, and potentially SpaceX to build commercial replacements for the ISS when it retires in 2030. NASA plans to award contracts for these replacements in 2025, with decisions expected in 2026.
However, Ghaffarian has expressed his preference for NASA to award a single contract, stating, “Today there’s not enough market for more than one.”
While Axiom faces these challenges, the company’s spacesuit program, developed under a $228 million contract with NASA for the Artemis Program, is reportedly on stronger financial and technical footing. The spacesuit development, essential for future lunar missions, has been drawing resources away from Axiom’s space station project, but multiple sources confirm it is the one element of Axiom’s business that NASA continues to view as crucial.
