Google Owns $95 Billion in SpaceX Stock - USA Big Tech AI Can't Compete

**Eli the Computer Guy** (0:00)
Coming from the information, Google says it holds 94.1 billion in SpaceX stock. SpaceX shares closed at $118 Thursday, down from $135 IPO price. And so this is one of the perfect examples of why I am really concerned about the whole AI ecosystem. To be clear for anybody new here, I really like a lot of the quote unquote artificial intelligence technologies, the technologies that underpin the buzzwords of what we call artificial intelligence, I think are actually really cool. The problem that we deal with is the financial valuations and the money and all of that kind of idiocy. That's where it gets completely ridiculous. And one of the big problems we have right now is so many of these companies are so incestuous. The example that I've currently been talking about a lot, because it's just happening, is this whole thing with AMD. So AMD is investing in Anthropic. So AMD is going to invest $5 billion in Anthropic, so that Anthropic can then purchase AMD's GPUs. Now, you think about this, right? The vendor is loaning money to the customer, so the customer can buy more product. Would you feel comfortable about that? But anyways, and then beyond that though, in the same article, which got to be very, very interesting, a very interesting question, it seemed to say that AMD was going to be backstopping Anthropic's data center leases. And so when we talk about backstopping in the corporate world, the idea is essentially a cosigner on a lease, so that if Anthropic signs a lease with a data center, and then for some reason is not able to fulfill the lease, if AMD is backstopping, it then means that they're on the hook or the rent for the data center? What the... What the hell?
To be clear, I am not screaming about neural. You have never said that neural networks should be burned to the ground, or semantic search, or whatever else. My problem is, again, the weird financial stuff going on. And that's the interesting thing now with Google and SpaceX. So Google actually invested in SpaceX back in like 2015
They invested when they had a $10 billion valuation. And the idea was they were investing mainly for Starlink. And this is where we get to, again, the weird thing with artificial intelligence and all that kind of stuff too. So think about this. This is Google, right? Google does search, Google does productivity applications, Google does YouTube, whatever else. And so you have this company that's trying to create satellite-based internet, right? That is great stuff. That absolutely and utterly makes sense for Google to invest in that company. And so they invested, I think, like $900 million at a $10 billion valuation. Yay! That makes a lot of sense, right? Google makes money when people are able to use their services. SpaceX is going to create more pipes so that more people around the world can use Google services. Nothing to be snarky about there. That is completely fine. The problem is, again, is 2026 And so SpaceX have gone into the artificial intelligence game, you know, for whatever reason, who knows why. And so at this point, right, SpaceX really wants that $1.77 trillion valuation, right? They IPO at $135 a share, maxed out at $225 a share. They're now at like $112 a share today or whatever else. And the thing is, the thing is, is SpaceX is just a wee bit of a disaster. But what's weird is that Google is now renting out SpaceX's data center services. So that's one of the things like, so there's this Colossus data center. And so Anthropic was renting GPUs, Anthropic was renting something like 240,000 GPUs from SpaceX. And now Google is renting out something like 100,000 GPUs from SpaceX, which is weird. It's just like, it's like, well, like Google does artificial intelligence, and now SpaceX or XAI does artificial intelligence. Why are they going to rent? Like there's a whole massive number of questions there. Until you realize, until you realize that Google has now $94 billion in equity in SpaceX. So normally Google should be competing with an AI company, but it looks like they're going to be supporting the AI company because they also own a tremendous amount of equity in their competition.
Oh, I hate 2026 I hate 2026 so much. Alphabet's Google disclosed Thursday it owns $94.1 billion in SpaceX shares, representing the bulk of a $99 billion in unrealized gains in marketable securities in the second quarter. The tech giant's marketable equity securities include $80 billion in SpaceX shares they can't sell in the short term, and $14.1 billion locked up through the third quarter of 2027, according to a quarterly filing. SpaceX shares closed at $118 billion Thursday, down from $135 billion IPO price. Google was an early investor in SpaceX, pouring $900 million in the company in 2015, when the rocket company was valued at roughly $10 billion.