Google parent company Alphabet disclosed in a recent Q2 filing that it holds a 6% stake in SpaceX, comprising $80 billion in locked shares and $14.1 billion in shares restricted from sale until Q3 2027. The disclosure comes as SpaceX stocks recently corrected to the low $100s after peaking at $200 last month following the company's record-breaking IPO. Google and investment firm Fidelity invested $1 billion in SpaceX in 2015, when the company's valuation was 150 times lower than current levels, according to The Wall Street Journal. The lockup disclosure requirement prompted the filing. Alphabet's stake revelation highlights the deepening strategic relationship between Google and SpaceX, particularly in AI infrastructure, as SpaceX faces investor scrutiny over profitability rather than rocket launch spectacles.
Google Holds $94.1 Billion SpaceX Stake Under Lockup Restrictions
Alphabet's recent Q2 report disclosed that Google owns $80 billion in SpaceX shares subject to short-term lockup restrictions and an additional $14.1 billion in shares locked until Q3 2027. The combined holdings represent approximately 6% of SpaceX's equity. Google and Fidelity jointly invested $1 billion in SpaceX in 2015. Compared to the valuation at that 2015 funding round, SpaceX's enterprise value has increased by a factor of 150, according to reports.
Google Pays SpaceX $920 Million Monthly for AI Computing Resources
Google contracted to pay SpaceX $920 million per month from October to June 2029 to lease AI computing resources. The contract covers approximately 110,000 NVIDIA GPUs, CPUs, memory, and large-scale AI computation infrastructure. Calculated over the contract period, the total agreement value exceeds $30 billion. Alphabet raised its capital expenditure guidance for the year to a maximum of $205 billion (approximately 303 trillion won), driven by cloud division growth. SpaceX established the massive AI datacenter "Colossus" in Memphis, Tennessee, positioning itself as a key infrastructure partner for Google's AI expansion.
Google and SpaceX Discuss Space-Based Datacenter Partnership
The two companies are reportedly in discussions to expand their partnership into future AI infrastructure projects, including the construction of space-based datacenters. The concept involves deploying datacenters in low Earth orbit to leverage stable solar power, ultra-low-latency communication, and improved cooling efficiency, overcoming limitations of terrestrial datacenters. While still experimental, Elon Musk has long identified outer space as the next stage for AI infrastructure. Google is exploring this possibility through collaboration with SpaceX. Analysts note that given Google's long-term partnership with SpaceX and its 6% equity stake, the likelihood of large-scale share sales remains low despite recent stock price corrections attributed to post-IPO profit-taking and valuation concerns.
FAQ
What stake does Google hold in SpaceX according to the Q2 filing?
Google parent company Alphabet disclosed in a recent Q2 filing that it holds a 6% stake in SpaceX, comprising $80 billion in locked shares and $14.1 billion in shares restricted from sale until Q3 2027.
How much does Google pay SpaceX for AI computing resources?
Google contracted to pay SpaceX $920 million per month from October to June 2029 to lease AI computing resources, including approximately 110,000 NVIDIA GPUs and related infrastructure. The total contract value exceeds $30 billion over the agreement period.
What future partnership are Google and SpaceX discussing?
The two companies are reportedly in discussions to expand their partnership into space-based datacenter construction. The concept involves deploying datacenters in low Earth orbit to leverage solar power, ultra-low-latency communication, and improved cooling efficiency.
