Why Alphabet Investors Own A Secret $100B SpaceX Stake

Core Insights - Alphabet Inc's investment in SpaceX, made in 2015 for $900 million at a $12 billion valuation, has significantly appreciated, potentially worth close to $100 billion today [1][2] - The proposed merger between SpaceX and xAI could lead to a combined valuation of approximately $1.25 trillion, with Alphabet's stake estimated to be worth $87–$90 billion, and possibly reaching $100 billion if an IPO occurs in mid-2026 [2] - Alphabet recorded an $8 billion unrealized gain in early 2025 due to the increase in SpaceX's valuation, highlighting the hidden value of this investment [3] Investment Implications - Many investors focus on Alphabet's core businesses like search, ads, and AI, overlooking its significant stake in SpaceX, which could serve as a powerful catalyst for growth [4] - The investment in SpaceX represents Alphabet's best return on investment, surpassing returns from its own products like Pixel and Fiber, emphasizing the value of strategic investments [5] - Alphabet's balance sheet includes a substantial asset in the form of a private stake in SpaceX, which could soon translate into significant financial returns [5]