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outside1234
Hopefully they made this investment pre-IPO at some vastly lower valuation because otherwise… …this is a not going to end well for them.
rubyfan
Didn’t they just raise $85B “for AI”?
throwaw12
100x return, I would sell immediately after this kind of gain, maybe that's why I am not a Google
the__alchemist
I am short both Google and SpaceX RN; SpaceX's IPO smells foul. Google is an AI-bubble short; Anthropic and OpenAI haven't IPOed yet.
wbsun
You probably need to mention the term otherwise people would definitely downvote. Shorting those companies in the long run is almost always a bad idea.
grim_io
6% is more than all of the issued IPO shares. They were 5%, right?
bombcar
What’s that in data centers?
miohtama
This investment has never been secret.

Google (now under parent company Alphabet) invested roughly $900 million as the majority of a ~$1 billion funding round alongside Fidelity Investments. This gave Google an initial equity stake of about 7–7.5% in SpaceX at a valuation of roughly $10–12 billion.

mvdtnz
No one made any claim that it was a secret. The linked article is literally about public disclosures from Google themselves.
teddyX
Bad decisions like this explain a lot
wenbin
Alphabet is the modern day berkshire hathaway.

Alphabet’s investment holdings (eg, spacex, anthropic..) are worth in the same order of magnitude of BRK’s (~$300B)

The track record of google’s M&A is pretty good.

Except for search and cloud, many of Google’s important products were from M&A - Maps, Docs, android, doubleclick, youtube , deep mind, etc.

nonethewiser
Maybe hacker news is wrong and SpaceX is actually valuable.
fco356pal
One of the best corporate investments in recent history. >100x returns in 10 years
simianwords
Why is this not seen as a circular deal? But other oracle debt is said to be circular
m101
Given how much ai spending Google need to do, and that the are selling equity for the first time in a long time to do it, no doubt spacex shares are going to be dumped out they moment they can.
[dead] lorreyfum
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VirusNewbie
Lol what? You think most people on HN who live in america are not millionaires?
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SwellJoe
It seems obvious that the deal Google signed to rent compute from xAI just before the IPO was specifically to goose the IPO, giving xAI nice looking growth. They could have paid a lot more for that deal and still made it all back on the IPO. I don't believe for a second Google needs the compute. They've got their own AI inference hardware, the biggest data centers in the world, and they don't make any of the most popular AI products. They're not desperate for compute.