Google holds roughly $94 billion in SpaceX shares following the company's historic $75 billion initial public offering, according to financial disclosures. Of that stake, about $80 billion is subject to lockup restrictions that prevent immediate sale.
Lockup on $80 Billion in Shares
The lockup restrictions apply to the vast majority of Google's holdings, meaning the search giant cannot sell those shares for a specified period. Such agreements are common after large IPOs to prevent a sudden flood of stock from hitting the market and depressing the price. The remaining $14 billion in shares are not restricted.
Monthly GPU Deal Worth $920 Million
Beyond the equity stake, Google and SpaceX have deepened their business relationship through a $920 million monthly deal for graphics processing units (GPUs). The arrangement underscores the growing demand for computing power, particularly for AI workloads, and ties two of the most capital-intensive companies in tech closer together.
Deepening Ties Between Tech Giants
The combination of a massive equity position and a recurring GPU contract signals a strategic partnership that goes beyond typical vendor relationships. SpaceX, known for its Starlink satellite network and rocket launches, is increasingly a major customer for Google's cloud and hardware divisions. The lockup restrictions ensure that Google's financial interest remains aligned with SpaceX's long-term performance, at least for now.
The IPO itself was a landmark event, valuing SpaceX at $75 billion and making it one of the most valuable private companies to go public. Google's stake, accumulated through earlier investment rounds, now represents a significant portion of the company's overall holdings.
Neither company has commented on the specifics of the lockup terms or the GPU deal. The lockup period's duration has not been disclosed, but such agreements typically last between 90 and 180 days. Once lifted, Google could choose to sell some shares, though the GPU deal suggests a continued operational partnership.
