Google's Investment in SpaceX: 100-Fold Growth Over a Decade — But There's a Catch
Google's stake in SpaceX is now valued at approximately $94 billion. The foundation for this position was laid by a 2015 investment.
At first glance, it might seem like a major new investment, but that's not the case. Google acquired a stake in SpaceX over a decade ago — when Elon Musk's company was just gaining momentum. Since then, the value of this stake has grown nearly 100 times. However, behind these impressive figures lies a complex financial reality.
How Google entered SpaceX in 2015
In January 2015, Google and 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. Google led the round.
Over ten years, SpaceX's value has multiplied. In June, the company went public at a price of around $135 per share — with a valuation of $1.77 trillion, it was the largest initial public offering in history. Google's stake appreciated approximately 100 times.
Each new funding round diluted Google's share. Today, it owns about 5% of SpaceX's shares.
Why the rise in SpaceX shares barely affected Google's value
The appreciation of the SpaceX stake appeared in Google's second-quarter report: the revaluation added roughly $99 billion, bringing quarterly profit to $112 billion. Investments in the AI company Anthropic also contributed.
There is almost no real cash behind these figures. Out of $9.11 in 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 liability.
The market reacted cautiously. In its quarterly report, Google dedicated a single line to the record profit and did not name any specific companies. By the close of trading, shares had fallen by approximately 1.2%.
Google has been through this before. In early 2025, the company similarly and quietly recorded a paper profit of $8 billion in its financial statements.
Investors were more concerned about expenses: over three months, Google allocated $44.9 billion to 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 funds. According to the report, $80 billion of the amount is locked, and the remainder will be unlocked even later.
Share prices can lose their gains as quickly as they gained them. 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 gains the ability to sell. As an analyst, I would note: for a long-term investor, this is a classic case of "paper wealth." Until SpaceX shares are converted into liquidity, this position remains more of a strategic asset than a source of real cash flow.