Alphabet, the parent company of Google, has seen a massive financial windfall in the first quarter of 2025 — thanks in large part to a long-standing investment in Elon Musk’s private aerospace firm, SpaceX. According to a report by Bloomberg, Alphabet gained $8 billion in unrealized profit from its early stake in the rocket and satellite company.
Alphabet’s Investment in SpaceX Pays Off Big
Alphabet’s first-quarter net income surged to $34.5 billion, translating to $2.81 per share, far exceeding Wall Street’s expectations of $2.01 per share. In its latest earnings report, Alphabet attributed $8 billion of that profit to unrealized gains from an investment in an unnamed private company — which Bloomberg has now identified as SpaceX.
Google, under the Alphabet umbrella, originally invested in SpaceX back in 2015, alongside Fidelity. The joint $1 billion investment reportedly secured them a combined 10% stake in the company. At that time, SpaceX was already making headlines with its Falcon 9 launches and its ambitious vision for Mars colonization.
SpaceX Valuation Skyrockets
Fast-forward to December 2024, and SpaceX conducted a share buyback that valued the company at a staggering $350 billion. This significant valuation boost greatly increased the value of Alphabet’s stake, even though the company has yet to sell any of its shares. The gains are considered “unrealized”, as the shares haven’t been cashed out, but they’re still counted under accounting standards for financial reporting.
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Alphabet Remains Quiet on the Details
While Alphabet didn’t directly confirm the identity of the company responsible for the $8 billion windfall in its quarterly report, it did list the gains under “unlisted securities.” Bloomberg, citing sources familiar with the matter, has attributed this income to the tech giant’s stake in SpaceX.
Alphabet declined to comment on the report, sticking to its policy of not discussing the specifics of private investments. However, the timing and financials strongly align with the recent valuation updates from SpaceX’s internal share activity.
What This Means for Alphabet and the Market
This unexpected windfall adds another layer to Alphabet’s increasingly diversified investment strategy. While Google’s advertising business continues to be its financial backbone, Alphabet has been expanding its reach into AI, cloud computing, autonomous vehicles, and space — with SpaceX emerging as one of its most lucrative bets to date.
Meanwhile, SpaceX continues to make headlines with its ambitious Starlink satellite internet project, Starship launches, and plans to transform space travel and exploration. The company’s rising valuation is a testament to its growing dominance not just in aerospace but in global communications infrastructure.
Final Thoughts
Alphabet’s early gamble on SpaceX is paying off handsomely, proving that big tech’s foray into the space race isn’t just about vision — it’s also a smart business move. As both companies continue to expand into new frontiers, investors and tech-watchers alike will be keeping a close eye on what comes next.
