Alphabet’s Stake in SpaceX Just Swelled to $94.1 Billion, and Its Position in Anthropic Is Worth Even More July 22 was a pivotal day for Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG).
It marked the first time in its storied history as a public company that it generated negative free cash flow — an indication that management is spending aggressively on artificial intelligence (AI) infrastructure expansion
But there’s a lot more to Alphabet than just cloud infrastructure services platform Google Cloud and the company’s integration of generative AI and large language model capabilities. Alphabet has evolved into one of Wall Street’s savviest investors, and the company’s second-quarter 10-Q filing with regulators fully or partially spilled the beans on how much its stakes in Space Exploration Technologies (SpaceX) (NASDAQ: SPCX) and AI start-up Anthropic are now worth. Alphabet’s stake in SpaceX has ballooned to $94.1 billion Google initially invested $900 million into Elon Musk’s space and AI conglomerate in January 2015, when SpaceX was valued at roughly $12 billion.
Although this 7.5% initial stake has been diluted a bit over the years, Alphabet’s stake in SpaceX remains sizable. In Alphabet’s June-ended quarter, the 10-Q notes that $80 billion of its stake is subject to early release sale restrictions, while the remaining $14.1 billion is to abide by long-term restrictions through the third quarter of 2027. In other words, this $900 million initial investment is now worth a cool $94.1 billion.