SpaceX IPO Could Boost Google’s Investment to $111 Billion
Alphabet Inc., parent company of Google, has significantly impacted the investment landscape with its remarkable stock performance this year. The company’s shares have surged nearly 70%, pushing its market capitalization to approximately $3.8 trillion.
Google’s Investment in SpaceX
A pivotal moment for Google came in 2015 when it invested around $900 million in SpaceX, acquiring about 7% of the space exploration company. At that time, SpaceX was valued at $12 billion. Fast forward to now, SpaceX is planning to go public next year with an anticipated valuation soaring to $1.5 trillion. This potential public offering could inflate the worth of Google’s shares in SpaceX to around $111 billion.
The Impact of SpaceX’s Success
SpaceX’s achievements have already begun to reflect positively on Google’s finances. Earlier this year, Google reported an $8 billion gain from “non-marketable equity securities,” which Bloomberg has identified as stemming primarily from its stake in SpaceX. Notably, this gain constituted 25% of Google’s net income for the first quarter of 2025.
Google’s Position Among Major Investors
As one of the largest external investors in SpaceX, Google joins the ranks of other notable firms such as Founders Fund and Fidelity. The strength of Google’s investment strategy has become even more apparent with the success of SpaceX’s Starlink project.
Revisiting the Initial Skepticism
When Google initially made its investment focused on Starlink, it faced skepticism. Critics pointed out significant technical and financial challenges, including the high costs of setting up ground-based antennas and the logistics of transmitting Internet signals from space.
Starlink’s Transformation and Strategic Advantage
Over time, most of those initial concerns have been resolved. Starlink is now operational and used by various organizations, from the Ukrainian army to United Airlines. Furthermore, Google’s investment has offered a strategic advantage by integrating Google Cloud with Starlink’s operations, enhancing both companies’ capabilities and market positions.
