Fresh off Elon Musk's SpaceX IPO, it appears that, for the first time, Blue Origin is preparing to raise outside capital in a deal that would value Jeff Bezos' rocket company at about $130 billion.

Andrew Ross Sorkin, financial columnist for The New York Times and a co-anchor of CNBC's Squawk Box, wrote in a DealBook report, "I've got a scoop on Blue Origin closing in on a big fund-raising round, which is expected to value Jeff Bezos' spaceflight company at about $130 billion."

"It would be the first time that outside investors buy a piece of Blue Origin in its 25-year history," Sorkin said.

Blue Origin is seeking $10 billion in a new funding round, with Coatue Management expected to lead with a $4 billion commitment. Bezos is preparing to contribute $2 billion, while the remaining $4 billion is expected to come from outside investors.

The fundraising would give Blue Origin a $130 billion valuation as it ramps up spending and tries to narrow the gap with SpaceX - yet that gap remains massive in terms of launch capacity.

In recent days, NASA Administrator Jared Isaacman said investigators have found that a "potential engine issue" was the cause of the catastrophic Blue Origin New Glenn rocket explosion that damaged part of a launch pad at Cape Canaveral on May 28.

Blue Origin has relied heavily on Bezos' personal wealth for years, including proceeds from Amazon stock sales. Bringing in outside money will accelerate spending and allow for more competition in America's space race, which the Trump administration has said is necessary to create a robust space industry.

Musk's SpaceX went public last month and raised $85 billion. SpaceX is now valued at nearly $2 trillion, despite a pullback in shares, currently trading around $150 in the premarket session.

A flurry of Wall Street analysts are turning incredibly bullish on SpaceX, with 12-month price targets ranging from Raymond James' $800 to Arete Research's $401 and Morgan Stanley's $300. That's because SpaceX has a launch moat that will be maintained for years - its launch capacity surpasses not just Bezos' rocket company, but entire nation states such as China and Russia combined. Read the report.