Alphabet's $900 million bet on SpaceX from 2015 has turned into a $94.1 billion stake after the rocket company's initial public offering. The IPO valued SpaceX at $1.77 trillion, making it one of the most valuable publicly traded companies. Alphabet reported the massive gain as part of its $99 billion in Q2 2026 results.
From $900M to $94B: A Decade-Long Bet
In 2015, Alphabet invested $900 million in SpaceX, then a private company still proving its reusable rocket technology. That investment, held through Alphabet's venture capital arms, has now multiplied more than 100 times. The $94.1 billion figure reflects Alphabet's stake after SpaceX's IPO, which allowed the search giant to realize a portion of its holdings while retaining a significant ownership position.
The return dwarfs most venture capital wins. For context, the $900 million initial outlay is roughly what Alphabet spends on cloud infrastructure in a single quarter today. The $94 billion gain is larger than the entire market capitalization of many Fortune 500 companies.
SpaceX's $1.77 Trillion IPO
SpaceX's IPO, which priced shares at a valuation of $1.77 trillion, made it the most valuable aerospace company by a wide margin. The offering drew strong demand from institutional investors, reflecting confidence in SpaceX's Starlink satellite internet business and its Starship rocket program. The company's revenue has grown rapidly as Starlink subscribers surpassed 5 million and NASA contracts for lunar missions expanded.
Alphabet's stake, disclosed in a regulatory filing after the IPO, represents about 5.3% of SpaceX's outstanding shares. The exact percentage was not specified in the filing, but the $94.1 billion valuation of the stake implies a roughly 5.3% ownership based on the $1.77 trillion IPO valuation.
Impact on Alphabet's Bottom Line
The $94 billion stake contributed significantly to Alphabet's Q2 2026 earnings. The company reported $99 billion in total results for the quarter, which included the SpaceX gain as part of its other income and investment gains. Without the SpaceX windfall, Alphabet's operating income from its core advertising and cloud businesses would have been lower.
Alphabet's CFO noted in the earnings call that the company plans to hold onto its remaining SpaceX shares, signaling confidence in the company's long-term prospects. The investment gain also boosted Alphabet's cash reserves, which now stand at over $150 billion.
The exact timing of any future sales of SpaceX shares by Alphabet remains unclear. The company has not disclosed a specific plan for reducing its stake.
