Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) didn’t build a rocket, but it bought the right one.
In 2015, Google’s parent company wrote a $900 million check to Elon Musk‘s then-risky SpaceX at a $12 billion valuation. It looked like a side bet. Eleven years later, it may be the greatest trade in its history — worth close to $100 billion — without launching a single satellite.
From Moonshot To Money Shot
That quiet stake has ballooned after Musk proposed a merger between SpaceX and xAI, which would create a combined company valued at around $1.25 trillion.
Even after dilution, analysts estimate Alphabet still owns roughly 7%. Do the math: that’s about $87–$90 billion today, with upside toward $100 billion if an IPO arrives in mid-2026.
For years, this value remained in the shadows because SpaceX was private. The curtain lifted in early 2025 when Alphabet booked an $8 billion unrealized gain in a single quarter as SpaceX’s valuation jumped.
The latest merger makes that “paper profit” look even bigger — larger than the market caps of Uber Technologies Inc (NYSE:UBER) or Airbnb Inc (NASDAQ:ABNB).
The Hidden Tailwind In GOOGL
Most investors buy Alphabet for search, ads, and AI.
Few realize they also own a large slice of the world’s most dominant space-and-AI company.
If SpaceX goes public, this stake could become one of the most powerful — and least appreciated — catalysts in GOOGL.
Why This Matters
Ironically, Alphabet’s best ROI didn’t come from Pixel, Fiber, or another in-house moonshot. It came from a tiny venture check written almost as an afterthought.
The lesson for investors is simple: Alphabet’s balance sheet contains more than ads and algorithms — it contains a private, near-$100 billion lottery ticket that could soon become very real money.
Image: Shutterstock
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