Asger Risom
Google’s long-ago bet on Elon Musk’s space company could turn into one of the most lucrative tech investments of all time.
Google’s long-ago bet on Elon Musk’s space company could turn into one of the most lucrative tech investments of all time, if SpaceX follows through on plans for a blockbuster public listing.
A reported IPO next year would not only reshape the space industry, but also deliver a staggering windfall for Alphabet.
A decade-old wager pays off
In 2015, Google invested roughly $900m in SpaceX, securing a stake of about 7% when the company was valued at around $12bn. At the time, the deal raised eyebrows, with analysts questioning whether Musk’s ambitions — particularly around satellite internet — were commercially viable.
Fast forward a decade, and that skepticism has largely evaporated. SpaceX is now reportedly preparing to go public next year at a valuation of $1.5tn, which would value Google’s stake at roughly $111bn.
IPO signals grow louder
Speculation around a SpaceX listing intensified this week after Musk appeared to endorse reporting from Ars Technica that described an imminent IPO as “accurate”. While SpaceX has long resisted going public, citing the pressures of quarterly reporting, the scale and maturity of its businesses now appear to be changing the calculus.
Neither Google nor SpaceX has officially commented on the plans, but multiple outlets report that preparations are underway.
A material boost to Google’s finances
Even before any IPO, SpaceX has already made a noticeable dent in Google’s financials. Earlier this year, Alphabet disclosed an $8bn gain from “non-marketable equity securities”, which Bloomberg identified as coming from its SpaceX holding.
That single gain accounted for around a quarter of Google’s net income in the first quarter of 2025 — a remarkable contribution from an investment that sits outside its core advertising and cloud businesses.
From skepticism to strategic advantage
When Google first backed SpaceX, much of the focus was on Starlink, the satellite broadband network. Critics at the time questioned everything from the cost of user terminals to SpaceX’s access to radio spectrum.
Most of those doubts have since been answered. Starlink now serves millions of users globally and is used by organisations ranging from the Ukrainian military to major airlines such as United. The system has also become strategically important for governments and disaster response.
Beyond paper gains, the relationship has delivered operational benefits too. SpaceX relies on Google Cloud to help power Starlink, giving Alphabet a foothold in one of the most ambitious infrastructure projects of the past decade.
Rich returns — with more to come
If SpaceX does debut at the rumoured valuation, Google’s return would rank among the most successful venture-style investments ever made by a public company. For Alphabet, already riding a strong year in the markets, it would be another reminder that some of its biggest wins lie far beyond search and advertising.
Sources: X.com, Bloomberg
