Investing.com -- Blue Origin is reportedly raising about $10 billion in its first outside funding round, valuing Jeff Bezos' rocket company at $130 billion.

Bezos will contribute $2 billion to the round, while hedge fund Coatue Management will provide about $4 billion, according to people familiar with the matter who requested anonymity because the details are private, according to a report from CNBC. The remaining $4 billion has attracted strong demand from several major investors expected to participate, the report said.

The funding follows SpaceX's initial public offering last month, which raised nearly $86 billion, including the underwriters' option. The SpaceX offering became the largest IPO on record and valued Elon Musk's company at about $2 trillion.

Bezos founded Blue Origin in 2000 after establishing Amazon (NASDAQ: AMZN). He stepped down as Amazon CEO in 2021 and has since devoted more attention to the rocket company. Blue Origin competes with SpaceX in heavy-lift rockets, lunar landers and satellite internet markets.

Bezos previously funded Blue Origin exclusively through sales of his Amazon stock. In 2024, he stated he believed Blue Origin would eventually become larger than Amazon.

Blue Origin faced a setback in late May when one of its New Glenn rockets exploded on a Florida launchpad during a static hot-fire test. The company is working to reconstruct the damaged pad and identify the cause of the explosion.