Google is close to investing in rocket maker SpaceX, according to several people familiar with the talks, creating a formidable alliance in Silicon Valley’s accelerating Internet space race.
The purpose of a deal, which is still in the works, is to support the development of SpaceX satellites that could beam low-cost Internet around the globe to billions who don’t have it.
The price and terms Google and SpaceX are discussing couldn’t be learned although one person familiar with them said Google has agreed to value SpaceX north of $10 billion and that the size of the total round, which includes other investors, is very large.
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.