Google's SpaceX and Anthropic Stakes Drive Record Profit 2026

Google's parent company Alphabet reported a record net profit of $112.1 billion, a 298% increase year-over-year, but the real story is that most of that profit came from the revaluation of its stakes in SpaceX and Anthropic, not from its core advertising or cloud businesses.

According to recent quarterly results, advertising revenue grew 24% and Google Cloud surged 82%, yet a staggering 88% of net profit was driven by accounting gains from two financial bets that now compete with Alphabet's central operations.

Why Google's Profit Is Not All About Advertising

For years, Google has been synonymous with online advertising. But these latest results reveal a shift: the company is increasingly earning from strategic investments in other tech giants.

SpaceX and Anthropic are not just any startups. SpaceX is now publicly traded and a leader in space exploration and satellite internet. Anthropic, the AI lab behind Claude, is one of the most valuable private AI companies, expected to go public soon.

Alphabet's early bets on these companies are now paying off massively, and the accounting rules require it to mark these investments to market, inflating net profit even if no cash has been realized.

The SpaceX Stake: A Decade-Old Bet Pays Off

Google's involvement with SpaceX dates back to 2015, when it invested $900 million at a $10 billion valuation. At the time, SpaceX was still a private rocket company with ambitious plans.

Fast forward to June 2025, and SpaceX went public at a valuation of $1.77 trillion. Google's stake is now worth $94.1 billion—a multiple of over 100 times its original investment.

This windfall highlights Google's long-term vision and willingness to back disruptive technologies, even those outside its core internet business.

Anthropic: A Shorter but Costlier Bet

Alphabet's investment in Anthropic is more recent. Since April 2023, Google has poured $13.3 billion into the AI lab, with commitments for up to $30 billion more.

Anthropic's private valuation has soared from $350 million to $965 billion, making it one of the most valuable AI startups. The company is expected to go public soon, potentially unlocking even more value for Alphabet.

But this bet is not without risk. The AI landscape is highly competitive, and Anthropic faces tough rivals like OpenAI and Google's own DeepMind.

What This Means for Alphabet's Future

The huge profit from these investments raises a question: is Alphabet becoming more of a tech investor than an operator? The company insists it remains focused on its core products, but the financials tell a different story. The background to this story is set out in SpaceX Revenue Jumps 161% in Second Earnings Report. A related thread runs through SpaceX Revenue Beats Expectations in First Post-IPO Earnings. Earlier coverage in David Beckham £39m Dividend as World Cup Deals Drive Record Profit shows how the argument developed.

With advertising growth slowing and cloud still a smaller piece of the pie, these investment gains could become a recurring feature of Alphabet's earnings—at least until the markets correct. A closer look at the same subject appears in SK Hynix Profit Soars 632% as AI Memory Shortage Drives Growth. Anyone following the wider picture can start with OpenAI and Anthropic Burn Rates Reveal AI's Staggering Capital Costs. The same theme surfaces in Broadcom Secures Expanded AI Chip Deals With Google and Anthropic, which takes a different angle.

Investors should watch how Alphabet manages these stakes. Will it cash out to fund new ventures, or hold on for more upside? The answer could shape the company's strategy for years. Context on how this played out before sits in Samsung's Record Profit Masks a Costly Memory Problem.

Key Takeaways

• Alphabet's record $112.1 billion profit was largely driven by revaluation of SpaceX and Anthropic stakes.
• Advertising grew 24% and Google Cloud 82%, but these core businesses contributed only a small fraction of net profit.
• Google's 2015 SpaceX investment turned $900 million into $94.1 billion after SpaceX's IPO.
• Alphabet has invested $13.3 billion in Anthropic since 2023, with commitments for up to $30 billion more.
• These investment gains highlight Google's role as a major tech investor, but also raise questions about sustainability.

Comparing Alphabet's Core Segments vs. Investment Gains

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