Google is coming out as one of the biggest winners in the SpaceX-xAI merger, as Elon Musk’s aerospace company hits a $1.25 trillion valuation.
This week, Elon Musk said SpaceX acquired the Grok maker xAI for $250 billion with the explicit goal of launching data centers into space.
The move puts SpaceX at an estimated valuation of $1.25 trillion ahead of its expected mega IPO this year.
Google invested $900 million for a 7.5% stake in SpaceX in 2015 “to support continued innovation in areas of space transport, reusability and satellite manufacturing.” At the current valuation, Google’s investment is now worth $93.75 billion, marking an eye-popping 104x jump in just 11 years. For context, Google printed an annual net income of over $100.1 billion in 2024.
While Google’s investment in SpaceX is now worth close to $100 billion, the tech giant won’t be able to realize those gains unless SpaceX becomes a publicly listed company. Even if SpaceX goes public this year, Google would likely have to wait another six months for the standard lock-up period, during which it cannot unload shares.
But Fundstrat’s Tom Lee said there’s a way for SpaceX shareholders to monetize their holdings while waiting for the regulatory quiet period to expire. In a recent interview, Lee said a SpaceX IPO will be a massive wealth-creation event as it opens up distribution for early investors, who can post their holdings as collateral to access liquidity.
Amid SpaceX’s massive valuation, venture capitalist Deedy Das highlights that the firm generated about $16 billion in revenue and $8 billion in profit last year.
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