Jeff Bezos is opening the doors to outside investors for the first time in Blue Origin's 26-year history. The rocket company founded by Amazon's creator is raising approximately $10 billion in a funding round that values the enterprise at $130 billion, CNBC's Andrew Ross Sorkin reported Wednesday.

The move marks a fundamental shift for a company that Bezos has funded entirely from his own pocket—primarily through sales of Amazon stock—since its founding in 2000.

A $10 Billion Raise

According to sources familiar with the matter, Bezos himself will contribute $2 billion to the funding round. Hedge fund Coatue Management is expected to invest approximately $4 billion, representing the largest outside commitment. The remaining $4 billion has attracted significant demand from multiple major investors.

At a $130 billion valuation, Blue Origin would become one of the most valuable private companies in the world—though it remains far behind its primary competitor.

Playing Catch-Up to SpaceX

Blue Origin competes with SpaceX across virtually every segment of the commercial space industry: heavy-lift rockets, lunar landers, and satellite internet services. In each area, Musk holds a significant lead.

SpaceX's Starship has completed multiple successful orbital flights, while Blue Origin's comparable New Glenn rocket suffered a setback in late May when it exploded on a Florida launchpad during a static hot-fire test. The company is now racing to return New Glenn to flight by year's end—a timeline that CEO Dave Limp has described as aggressive but achievable.

The new funding could help accelerate Blue Origin's development timelines. With fresh capital, the company can invest more heavily in manufacturing, testing, and infrastructure without relying solely on Bezos's willingness to liquidate Amazon shares.

Bezos's Vision

In May, Bezos told CNBC that he was "considering" outside investment for the first time. "It's a good time, actually, to start thinking about the future and bring on some other outside investors," he said.

The statement reflected a growing recognition that competing with SpaceX—now a publicly traded company with access to capital markets—requires resources beyond what even the world's second-richest man can comfortably provide from personal wealth alone.

Bezos has stated he believes Blue Origin will eventually become a larger company than Amazon itself. That vision centers on a future where millions of people live and work in space, with Blue Origin providing the transportation and infrastructure.

The Billionaire Space Race Heats Up

The funding round comes during a remarkable period for commercial space investment. SpaceX's IPO generated unprecedented retail investor enthusiasm, and the company's stock—though it has slipped below its debut price in recent trading—has brought new attention to the industry's potential.

Blue Origin's ability to attract $10 billion from Coatue and other institutional investors suggests confidence extends beyond public market speculation. These sophisticated investors are betting that Bezos's company can close the gap with SpaceX and capture a meaningful share of the rapidly growing space economy.

For Bezos, the fundraising represents both an opportunity and a necessity. The space industry is entering an era where scale and speed matter more than ever. By opening Blue Origin to outside capital, he's ensuring the company has the resources to compete—even if it means sharing ownership of the enterprise he has built alone for more than two decades.

The race to space now has fresh fuel.