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Alphabet Signals Bigger Direct Bets on AI Startups

Soaring valuations at SpaceX, Anthropic, Waymo bolster Alphabet’s case for higher-return stakes.

Overview

  • Sundar Pichai said the AI shift is opening more chances for Alphabet to invest in startups and that the company is actively deploying capital.
  • Alphabet is writing large checks off its balance sheet rather than relying only on GV and CapitalG, following a playbook used by Nvidia, Microsoft, and Amazon.
  • Alphabet’s 2015 $900 million SpaceX investment could be worth around $100 billion based on the xAI merger valuation, with a confidential IPO filing reportedly targeting about $1.75 trillion.
  • Google has invested more than $3 billion in Anthropic and now holds roughly 14%, with the AI lab’s valuation reported at about $380 billion as of the last funding round.
  • Waymo raised $16 billion at a $126 billion valuation, and Pichai said he would have invested more earlier if the unit had been mature enough, underscoring a focus on timing and return on invested capital.