1 Surprising Stock That's Already Cashing in on the SpaceX IPO Hype
Written by Jack Delaney for The Motley Fool -> Alphabet and SpaceX are connected in several ways. SpaceX is also renting out computing capacity to Alphabet. Heading into its initial public offering (IPO) set for tomorrow, SpaceX gave an attention boost to the space sector, wit
Heading into its initial public offering (IPO) set for tomorrow, SpaceX gave an attention boost to the space sector, with several companies benefiting. But there is also another surprising winner from SpaceX's plans to go public : Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) .
Not only does it own a stake in the company, but it also has a growing partnership with SpaceX. That means, even after the IPO, Alphabet can still benefit from the space company's long-term success.
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In 2015, Alphabet joined Fidelity Investments in a $1 billion funding round for SpaceX, with Alphabet owning a 6.1% stake of the space company as of the end of 2025. But with SpaceX's merger with Elon Musk's other company, xAI, that may now only be worth about 5%.
The value of that stake will be a little murky for the time being, with only estimates of what Alphabet's shares could be worth. But once Spacex goes public , there will be a clearer picture, as Google will report the stake in its quarterly filings. Rather than just keep the paper gains, however, Alphabet may eventually start selling its position, unlocking the cash to fund its own endeavors.
Ahead of the IPO , on June 5, SpaceX made a deal with Alphabet-owned Google to rent compute capacity from October 2026 to June 2029 for $920 million a month. The deal is in response to the surging demand Google is seeing for its enterprise artificial intelligence (AI) agent platform, Gemini Enterprise.
Although Alphabet doesn't break down revenue specifics for Gemini Enterprise, it still shares a few impressive stats that highlight growing demand. For the company's 2026 first-quarter earnings, the tech giant reported 40% growth in paid monthly active users from the previous quarter.
There are a few stipulations in the deal that would allow Alphabet or Tesla to cancel the contract, but it can be immediately beneficial for both companies: SpaceX receives recurring revenue, and Alphabet gains access to compute power without having to build its own infrastructure.
