Alphabet’s long-term bet on SpaceX has turned into one of the most successful investments in its history.
More than a decade after Google invested in Elon Musk’s rocket company, Alphabet has revealed that its stake is now worth an estimated $94.1 billion. The disclosure came through the company’s latest quarterly filing, giving investors the clearest picture yet of how valuable its SpaceX investment has become.
While the position has generated enormous paper gains, Alphabet still faces restrictions on selling much of its stake due to post-IPO lockup agreements.
Google’s early investment has paid off
Alphabet’s relationship with SpaceX dates back to January 2015, when Google partnered with Fidelity Investments in a $1 billion funding round for the private aerospace company.
At the time, SpaceX was valued at roughly $12 billion, and Google’s contribution was estimated to be between $500 million and $900 million. That investment gave Google a sizable ownership stake in the rapidly growing space company.
Although later fundraising rounds diluted Google’s ownership percentage, the dramatic increase in SpaceX’s valuation has more than compensated for that reduction.
Alphabet now owns around 6% of SpaceX
According to Alphabet’s latest Form 10-Q, the company now owns approximately 6% of publicly listed SpaceX.
The filing values that holding at $94.1 billion, making it one of Alphabet’s largest equity investments outside of its core business.
The company also disclosed that:
- Around $80 billion of its shares remain under short-term lockup restrictions.
- Another $14.1 billion worth of shares cannot be sold until the third quarter of 2027.
These restrictions mean Alphabet cannot immediately cash in on the investment despite its massive appreciation.
SpaceX’s growth fueled the investment
Since Google first invested, SpaceX has transformed into one of the world’s most valuable technology companies.
The company expanded its:
- Starlink satellite internet network
- Reusable Falcon rocket operations
- Starship launch program
- Commercial space transportation services
A major milestone came earlier this year when SpaceX acquired Elon Musk’s artificial intelligence company, xAI.
The transaction valued:
- SpaceX at $1 trillion
- xAI at $250 billion
Together, the combined company reached an estimated valuation of $1.25 trillion before eventually going public.
SpaceX IPO changed everything
SpaceX officially debuted on the Nasdaq on June 12, trading under the ticker SPCX.
The company priced its initial public offering at $135 per share, raising approximately $75 billion and achieving an initial market valuation of around $1.75 trillion.
Going public allowed Alphabet to replace internal private-market estimates with a market-based valuation for its investment.
That transition explains why the company’s latest earnings report now provides a precise value for its SpaceX holdings.
Stock decline trims some gains
Despite an impressive IPO, SpaceX shares have pulled back in recent weeks.
The stock was trading around $112.88 on July 23, roughly 16% below its IPO price.
Earlier, shares had surged above $225, making the recent decline a notable correction.
Although the lower share price has reduced the value of Alphabet’s investment from its peak, the holding still represents one of the largest unrealized gains on the company’s balance sheet.
SpaceX isn’t Alphabet’s only valuable investment
SpaceX is just one of several major private-company investments benefiting Alphabet.
The company also owns significant stakes in:
- Anthropic, one of the leading artificial intelligence startups.
- Databricks, a major cloud data and AI platform.
Alphabet reported approximately $98 billion in unrealized gains from equity investments during the second quarter.
Because those gains include multiple investments, not all of the increase can be attributed solely to SpaceX.
Lockup restrictions delay any sale
Although Alphabet’s investment has appreciated dramatically, the company cannot freely sell most of its shares.
The lockup agreements following SpaceX’s IPO prevent early investors from immediately exiting their positions.
As a result, Alphabet remains exposed to future movements in SpaceX’s stock price until those restrictions expire.
If the shares continue rising, the investment could become even more valuable. However, further declines would also reduce the company’s paper gains.
A remarkable long-term investment
Alphabet’s decision to invest in SpaceX more than ten years ago has become one of Silicon Valley’s most successful venture investments.
What began as part of a $1 billion private funding round has grown into a stake worth over $94 billion, highlighting the enormous value created by SpaceX’s expansion into satellite communications, reusable rockets, and artificial intelligence.
Even after recent stock market volatility, Alphabet’s investment remains a powerful example of how patient, long-term investments in innovative companies can generate extraordinary returns.
