Alphabet Invests $94 Billion in SpaceX, Implying 6% Stake

Alphabet has disclosed a massive $94.1 billion investment in SpaceX as of June 30, marking its second Mag-7 company to hold a stake in the rocket manufacturer. This implies a roughly 6% stake based on SpaceX's market capitalization at the end of last week.

The disclosure is part of Alphabet's quarterly report and highlights the significant role that SpaceX shares have played in driving gains from Alphabet's stock investments during the second quarter, totaling nearly $99 billion.

Alphabet and SpaceX share a long history of partnership, dating back to 2015 when Google poured roughly $900 million into SpaceX as part of a funding round. In recent years, they have expanded their ties through key operational partnerships, including a multi-year agreement signed in June where Alphabet will pay SpaceX about $920 million a month for AI computing power.

Tesla has also reported a significant gain on its own stake in SpaceX, with a $1 billion mark-to-market gain in the second quarter. However, Tesla holds a much smaller stake compared to Alphabet's, amounting to nearly 19 million shares of Class A common stock as of May.