Blue Origin has garnered a major rocket deal that proves Amazon (NASDAQ:AMZN) CEO Jeff Bezos entrepreneurial capacities go beyond excelling in the e-commerce and artificial intelligence industries.
Blue Origin is a space company that Jeff Bezos created and it has now netted a contract with the United Launch Alliance (ULA) to offer it the space company’s next-generation engines for a rocket that the ULA is in the process of developing, according to a person familiar with negotiations who informed CNBC of the matter and chose to remain anonymous.
The engine in question is Blue Origin’s BE-4, which is the company’s leading product of its propulsion branch. The BE-4 will be used to power the ULA’s Vulcan rocket, which is a new heavy lift vehicle.
Blue Origin’s initiatives will offer competition to Tesla (NASDAQ:TSLA) CEO Elon Musk’s SpaceX, another company that has been garnering commercial and military contracts in the latest space race. The deal will reportedly be announced on Thursday by ULA, which is a joint venture of Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT).
Blue Origin is one of Bezos’ innovation vehicles that could prove to be both highly profitable and important for space exploration and the development of military vessels. The Amazon CEO has invested $1 billion of his AMZN shares into the project and he said eight days ago that he will invest another $1 billion into the company to develop the New Glenn rocket, which will be powered by the BE-4 engine.
AMZN stock gained 2% on Thursday.