The New Shepard rocket malfunctioned on Monday, causing the booster to crash. The capsule was taken to safety by an escape system.
There were no people on the flight that lifted off from the launch site. New Shepard vehicles have taken celebrities including Mr. Bezos to the edge of space.
The company's flights will be grounded until the FAA can determine if any system, process or procedure affected public safety.
The F.A.A said that this is standard practice for all accidents.
The New Shepard flights provide a few minutes of weightlessness at the top of the arcs which reach more than 62 miles above the surface.
New Shepard flights are an economical way for scientists to conduct experiments in near-zero gravity.
A large yellow flame erupted from the booster's engine after the New Shepard rocket passed through the max-Q period. The capsule was propelled away from the failing booster as the booster began to tilt.
The commentator during Blue Origin's live coverage of the launch said that they had experienced an "Anomaly" with the flight. We don't have any information yet.
The capsule's altitude was seven miles lower than a normal flight.
The capsule made a hard landing in the Texas desert.
Blue Origin said that the booster failed on the flight. The escape system did its job.
No one on the ground was hurt in the accident.