Alphabet’s early SpaceX funding has delivered a greater than 100-fold return, and Nvidia is now sitting on a $21 billion stake in Elon Musk’s rocket firm. The disclosures come as SpaceX quickly expands its AI enterprise, boosts infrastructure spending and deepens its partnership with Nvidia. Right here’s why Musk’s AI ambitions may flip SpaceX into a serious participant within the AI infrastructure race.
Here is a take a look at some numbers:
Alphabet‘s early wager on SpaceX has already began displaying color. The Google father or mother mentioned its $900 million funding in Musk’s house firm in 2015 had grown greater than 100 occasions, with its SpaceX stake valued at round $94 billion as of the top of June.
Alphabet held 551.2 million SpaceX shares on the finish of the second quarter, in line with the agency’s submitting, value about $94.2 billion at SpaceX’s June 30 share value of $170.86.
Nvidia Corp. on Friday disclosed a virtually $21 billion stake in SpaceX. The AI chipmaking large had about 122.8 million shares in SpaceX as of June 30, in line with a regulatory submitting made Friday.
Nvidia’s SpaceX shares got here from its earlier funding in Musk’s synthetic intelligence enterprise xAI. Nvidia had earlier invested as much as $2 billion in Elon Musk’s AI firm xAI in 2025. The funding included each fairness and debt, as per a Bloomberg report. xAI was later merged into SpaceX forward of its deliberate public debut.
Harvard Administration Co. has revealed a $2.2 billion funding in SpaceX, displaying its good points from its early wager on Musk’s firm. In its newest 13F submitting, Harvard mentioned SpaceX was its largest particular person inventory holding amongst its $4.3 billion in US equities.
Elon Musk, himself, held a 48.4% stake in SpaceX as of June 30, a regulatory submitting confirmed on Thursday, valuing his holding at greater than $900 billion at present market costs.
Why is Musk’s AI push drawing huge investments?
First, the quantity speaks. Within the second quarter, SpaceX reported 247% income progress within the synthetic intelligence (AI) section, pushed largely by cloud companies offers with Alphabet and Anthropic.
And now Musk has already began speaking concerning the subsequent part of progress. Musk mentioned throughout a current earnings name that SpaceX will use Nvidia’s Vera Rubin NVL723 AI techniques each in house and on Earth. SpaceX will even associate with Nvidia to develop the Starmind AI1 satellite tv for pc computing system.
Explaining its significance, Sidharth Sogani, CEO of Blue Aster Capital (Bahrain) and CREBACO World, instructed Livemint, “Placing such techniques in orbit for real-time geospatial processing and flight analytics opens up a wholly new deployment setting.”
Alphabet, Amazon, Meta, Microsoft and Oracle at the moment dominate data-centre spending. Goldman Sachs expects these 5 hyperscalers to spend round $800 billion on AI infrastructure in 2026, with complete AI capex crossing $1 trillion.
A Motley Idiot report says SpaceX may quickly be part of this group.
The corporate spent $13 billion on AI infrastructure in 2025 and has already exceeded that quantity within the first half of 2026. Morgan Stanley expects SpaceX’s AI funding to succeed in $110 billion by 2028, doubling yearly.
SpaceX is not targeted solely on launching rockets and working satellites. Elon Musk is increasing the corporate’s AI operations, backed by quickly rising income, heavy infrastructure spending and a detailed partnership with Nvidia. If this technique succeeds, SpaceX may emerge as a critical rival to main AI infrastructure corporations, opening up a brand new supply of progress for buyers.
