Alphabet(US:GOOG) The Motley Fool·2026-01-18 16:23Core Viewpoint - Alphabet's investment in SpaceX, valued at approximately $900 million for a 7% stake, could yield significant returns as SpaceX plans to go public, potentially valuing the company at $1.5 trillion, which would increase Alphabet's stake value to around $105 billion [3][4][7]. Investment Strategy - Public companies like Alphabet can invest in other businesses, similar to Berkshire Hathaway, which has successfully built a conglomerate through strategic investments [1]. - Alphabet's investment in SpaceX is a notable example, with the potential for substantial financial returns as SpaceX prepares for an IPO [2]. SpaceX Valuation and IPO - SpaceX is considering an IPO in 2026, targeting a valuation of $1.5 trillion, significantly higher than its recent private funding round valuation of $800 billion [4][6]. - The IPO could be unprecedented in size and may influence market dynamics, especially if SpaceX is profitable and included in the S&P 500 [6]. Potential Use of Proceeds - If Alphabet sells its shares post-IPO, the proceeds could be utilized to enhance its investments in artificial intelligence infrastructure, which may offer higher returns compared to maintaining the SpaceX stake [7][9]. Broader Implications for Alphabet - Regardless of its decision on the SpaceX shares, Alphabet is expected to benefit from the public debut of SpaceX, reinforcing its position in various sectors including generative AI, cloud computing, and autonomous vehicles [10].