Skip to main content

Google close to $1bn SpaceX investment

Google is considering a $1 billion (£660 million) investment into Elon Musk’s SpaceX program, in a bid to improve the private company’s development of satellites for the internet.

The goal of the cooperation is to bring internet to billions of people that currently don’t have it.

There are no details on a definite price, or the terms Google and SpaceX are discussing, however Google agreed that SpaceX is worth more than $10 billion (£6.6 million), The Information has cited “one person familiar with them”.

SpaceX’s investors include Founders Fund, Draper Fisher Jurvetson and Valor Equity Partners. The company, which has been developing rockets to lower the cost of space travel, hasn’t raised a primary round of funding in several years.

Google is focused on bringing internet (or on bringing Google, obviously) to millions, potentially billions of people that are currently “disconnected” from the rest of the world.

In April 2014, the internet search giant bought US high-altitude drone maker Titan Aerospace for an undisclosed sum, saying the acquisition was intended to help the firm's efforts to expand internet access.

Titan Aerospace, which builds two types of solar-powered drones that can fly for years, says it expects "initial commercial operations" by 2015.

“Atmospheric satellites could help bring internet access to millions of people, and help solve other problems, including disaster relief and environmental damage like deforestation," Google said in a statement after sealing the deal.

However, Google is not the only company looking to expand internet access into new areas.

Facebook is also on the same trail, and the California-based company recently bought UK-based drone maker Ascenta for 12 million pounds.