Alphabet Inc. increases SpaceX stake by 3.8 million shares amid valuation drop
Alphabet Inc. increased its stake in SpaceX by 3.8 million shares in Q3, bringing its total holdings to approximately 555 million shares, despite a significant $10.5 billion drop in the stake's value during the quarter. This valuation decline, driven by a share price fall from $170.86 to $123.62, contributed $8.2 billion in unrealized losses to Alphabet's negative other income. Concurrently, Alphabet has a substantial commercial agreement with SpaceX, paying $920 million monthly for Nvidia GPU access for its Gemini Enterprise AI platform, highlighting a shift from a long-term equity play to a critical operational dependency.
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