Jeff Bezos’ Blue Origin is raising $10 billion in its first outside funding round, valuing the rocket company at $130 billion and marking the first time in 26 years that Bezos has opened the company to external investors.
Coatue Management, an asset manager, is leading the round with a $4 billion commitment, according to CNBC. Bezos himself is contributing an additional $2 billion, while the remaining $4 billion is expected to come from large institutional investors, sources said.
The funding comes as Blue Origin intensifies competition with Elon Musk’s SpaceX, which completed a blockbuster initial public offering last month that raised nearly $86 billion and valued the company at approximately $2 trillion. In May, Bezos told CNBC that Blue Origin was “considering” outside investment. “It’s a good time, actually, to start thinking about the future and bring on some other outside investors,” he said at the time.
Blue Origin plans to use the capital to ramp up production and operations of its New Glenn orbital rocket, which is central to the company’s ambitions in heavy-lift launch services, lunar landers, and satellite internet. The company suffered a setback in late May when one of its New Glenn rockets exploded on a Florida launchpad during a static hot-fire test, but Bezos and CEO Dave Limp have set an aggressive goal to return the rocket to flight by the end of 2026.
Bezos founded Blue Origin in 2000 and has solely funded the company through sales of his Amazon stock until now. In 2024, he said he believed Blue Origin will one day be a bigger company than Amazon. The New York Times reported that the funding round would give Blue Origin a set valuation for future investors and any additional financing the company may pursue, while also reducing Bezos’ personal financial burden.
According to Ars Technica, Bezos is seeking private capital “both to limit his own investments and to provide additional funding for the growth needed if Blue Origin is to compete with SpaceX.” The Times of India reported that SpaceX’s recent success adds pressure to Blue Origin as it works to narrow the competitive gap with Musk’s company in government contracts and commercial launches.
Sources
- CNBC — Reported the $10 billion raise, $130 billion valuation, and breakdown of investor commitments (Bezos $2B, Coatue $4B, other investors $4B)
- The New York Times — Confirmed the first outside funding round, Bezos’ May statement about considering outside investment, and context on reducing Bezos’ financial burden
- Reuters — Verified it is the first outside funding in Blue Origin’s history
- Ars Technica — Provided context on Bezos seeking capital to limit personal investments and fund competitive growth
- The Next Web — Reported this is the first time Bezos has opened Blue Origin to outside investors in 26 years
- Wall Street Journal — Stated the funding will be used to ramp up production and operations of the New Glenn rocket
- SpaceNews — Reported Blue Origin’s plans to use funding for launch services and satellite operations
