Google (now under parent company Alphabet) invested roughly $900 million as the majority of a ~$1 billion funding round alongside Fidelity Investments. This gave Google an initial equity stake of about 7–7.5% in SpaceX at a valuation of roughly $10–12 billion.
Investors are buying Musk, like they were buying Warren Buffett with Berkshire Hathaway. Long-term shareholders are not buying space; they are buying Musk. This has been clear to everyone since the beginning; it has been well communicated (look at SpaceX governance rules in Texas), and there is nothing mystical about it.
It's very likely Musk will roll everything up into a single Musk conglomerate.
"The Market", at this scale, means "You find the buyer(s) yourself and work up the deal with a hundred lawyers and PR staff and hope the contract negotiation stays secret".
One consequence of booking the revenue is that they're going to have to report a loss when they sell it.
It's possible there's some tax shenanigans at play (idk): report the profit, mark it against their massive AI capex, sell later when they can book a loss. (I'm not sure if it works that way, it wouldn't for an individual, but maybe they can find a way to trigger a stepped up basis.)
Or is Alphabet greedy for holding onto the equity instead of selling it for cash? Or is throwaw12 greedy for wanting to sell something after a 100x return?
100 billion is nothing if that money can put you in better spot at technology landscape
The market hasn't been working on fundamentals for a long time. I have a fair amount of value stocks and a bunch of cash lying around, so I'll be ok.
I really feel for anybody trying to invest to grow right now; there's no obvious safer play.
Google has hardware, software ecosystem, mobile ecosystem, controls browser, has access to 2B+ users, has talent to come up with ideas - perfect spot for AI
Anthropic and OpenAI though will likely be dead, killed by cheap open weight LLMs and local LLMs.
But yes the stock could go down much further and I hope they are willing to show the losses if they can show this as gains today.
Imagine the next call being about how their 95$B went to sub 30B$..
Will that be a negative line item. I don't see the point in disclosing this stake as earnings.
But I do get that accounting was made as a tool for companies to show off.
https://www.theguardian.com/science/2015/jan/20/spacex-fundi...
Actually more like $14.1 and whatever value the other $80 is worth when they sell. Which is probably going to be worth well North of whatever is lost on the $14.1 B long-term... All part of the scam to inflate the value of the AI bubble
[0] https://www.justice.gov/epstein/files/DataSet%2010/EFTA01762...
Would I bet that other humans would believe that? Nope.