Google's investment in SpaceX: a paper profit of $94 billion and 100-fold growth over a decade
Google's stake in SpaceX is now valued at approximately $94 billion. However, this figure is not the result of a fresh funding round, but a reflection of a long-term strategy laid out back in 2015.
How Google Entered SpaceX's Capital
In January 2015, Google, together with Fidelity, invested $1 billion in SpaceX, acquiring nearly 10% of the company. At that time, the entire SpaceX was valued at just over $10 billion. Since then, the company's value has multiplied many times over. In June, SpaceX went public at a price of around $135 per share, with a valuation of $1.77 trillion — the largest initial public offering in history. Google's stake has appreciated roughly 100 times.
Subsequent funding rounds diluted Google's stake. Today, it owns about 5% of SpaceX shares.
Why SpaceX's Growth Barely Affected Google's Value
The revaluation of the SpaceX stake appeared in Google's second-quarter report: it added approximately $99 billion, and quarterly profit reached $112 billion. Investments in the AI company Anthropic also contributed. However, behind these figures, there is almost no real cash. Out of $9.11 earnings per share, $6.26 came from asset revaluation — without it, the quarter would have been ordinary. Additionally, the revaluation resulted in a $21.9 billion tax.
The market reacted cautiously. In its quarterly report, Google dedicated one line to record profit and did not name any specific companies. By the close of trading, shares fell by about 1.2%.
Google has been through this before. In early 2025, the company similarly quietly recorded a paper profit of $8 billion in its reports.
Investors were more concerned about expenses: over three months, Google directed $44.9 billion toward artificial intelligence and spent $5.9 billion more than it earned. Record investments in AI alarmed market participants — analysts had warned of this risk even before the report was published.
Most of Google's SpaceX Shares Remain "Locked Up"
Google cannot yet sell this stake and freely use the money. According to the report, $80 billion of the amount is locked, and the rest will be unlocked later.
Quotes can lose growth as quickly as they gained it. After the IPO, SpaceX shares soared above $200, but by July 23, they had fallen to around $114. The first lock-up expires in August — at the same time, SpaceX will report as a public company for the first time.
The $94 billion figure looks impressive, but it is only paper profit — and it cannot be disposed of yet. The real test will come after the lock-up period ends, when Google gets the opportunity to sell.
Expert opinion: This story is a clear example of how venture investments with a decade-long horizon can yield phenomenal returns, but only on paper. The key risk is liquidity: when the lock-up expires, the market may not withstand the pressure from sellers, and Google's "paper" wealth risks shrinking significantly. Investors should remember: the value of locked assets is not cash in hand, but merely an entry on the balance sheet.