Alphabet's Space Bet Could Be Ready to Launch: Why SpaceX Could Send This Tech Giant to the Moon in 2026

The Hidden Opportunity Nobody’s Talking About

While most investors focus on Alphabet’s dominant Google search engine and YouTube streaming platform, few realize the company holds a potentially game-changing asset buried in its portfolio: a roughly 7% stake in SpaceX that could skyrocket in value once Elon Musk’s rocket company goes public.

Back in 2015, Alphabet invested $900 million in SpaceX when the company carried a valuation of around $12 billion. Today, that same stake has grown dramatically. SpaceX recently hit an $800 billion valuation in secondary markets, and Musk has indicated he’s targeting a $1.5 trillion IPO valuation. At that price point, Alphabet’s position would be worth over $100 billion — a 100x+ return on a single investment that most people have forgotten about.

Why SpaceX’s IPO Could Send Alphabet to the Moon

The timing matters. SpaceX is preparing for a potential late 2026 IPO to fund its accelerating rocket launch schedule. The company has already launched more than 100 rockets this year alone, with over 70 dedicated to its Starlink satellite constellation. This isn’t just about launching satellites — Starlink has evolved into a legitimate business powerhouse with more than 8 million subscribers, service availability across 150 markets, and approximately two dozen airlines already relying on the network.

Beyond connectivity, SpaceX generates substantial revenue through government contracts and commercial launch services. The company is also pursuing orbital data centers, a concept that seemed far-fetched but is now attracting serious interest from major tech players. These space-based facilities would leverage solar power and cosmic cooling advantages that terrestrial centers cannot match.

Alphabet’s Broader Space Ecosystem

Alphabet hasn’t just made a single SpaceX bet. The company has strategically positioned itself across the entire space industry landscape. Through Project Suncatcher, a partnership with satellite imagery company Planet Labs (in which Alphabet owns a 10% stake), the company plans to launch two prototype satellites in 2027 to validate orbital data center technology. Alphabet also maintains a position in AST SpaceMobile, which is developing technology enabling satellite networks to connect directly to existing smartphones.

This constellation of space investments reveals a sophisticated strategy — Alphabet isn’t banking on any single space company succeeding, but rather building exposure across multiple promising sectors within the emerging space economy.

Beyond Space: Alphabet’s Complete Technology Arsenal

While the SpaceX opportunity captures headlines, it’s just one thread in Alphabet’s broader transformation into a comprehensive AI and cloud technology powerhouse. Google Cloud continues accelerating, powered by enterprise demand for AI infrastructure. The company’s custom-built Tensor Processing Units (TPUs) provide significant cost advantages, while its Gemini language model ranks among the industry’s most capable foundational models.

Waymo’s robotaxi business has surpassed 450,000 weekly paid rides and is expanding internationally into Tokyo and London, representing another potential future revenue stream. The company’s Willow quantum computing chip has demonstrated real-time error correction capabilities, solving a fundamental challenge that has long plagued quantum development.

The Investment Case

Alphabet trades at a forward P/E ratio of 27 times 2026 analyst estimates. The combination of a dominant search and advertising business, accelerating cloud growth driven by AI adoption, high-potential emerging bets in autonomous vehicles and quantum computing, plus an undervalued space investment portfolio that could deliver astronomical returns, creates a compelling long-term thesis.

The SpaceX IPO in 2026 could unlock $100 billion in unrealized value, but it’s ultimately just the icing on an already-strong technology and AI investment story.