Jeff Bezos’ rocket company, Blue Origin, has faced challenges in its journey to compete with Elon Musk’s SpaceX. In recent years, Blue Origin has operated under the radar, while SpaceX has achieved significant successes. However, Blue Origin had begun to make strides, nearing the launch of its large New Glenn rocket.

The New Glenn rocket was expected to play a crucial role in boosting the space industry’s capacity to send satellites and other equipment into space. NASA recently showed confidence in the rocket by involving it more in the Artemis program aimed at returning to the moon. Additionally, Amazon prepared to launch 48 satellites to challenge SpaceX’s Starlink in the internet service sector.

On Thursday, the situation took a turn as the New Glenn rocket exploded in a fireball on its launchpad during a test around 9 p.m. The incident represents a significant setback, according to Chad Anderson, an investor at Space Capital. The explosion and resulting delays impact Blue Origin and its partners, including Amazon and NASA, while SpaceX is making progress toward a major initial public offering that could value the company at more than $1.25 trillion.

If the rocket had exploded in mid-air, the damage might have appeared routine. However, the explosion on the ground severely affected the launchpad. A massive steel tower was reportedly destroyed, and there are concerns regarding the condition of the hydraulic and fueling systems beneath the concrete pad.