SpaceX has been going from strength to strength as a private space exploration and transportation company. Elon Musk’s success story recently received further recognition with news that Google and Fidelity are investing a collective $1 billion in SpaceX. Combined, Google and Fidelity now own just under 10 percent of SpaceX, which has already taken on four other major investors. The round values SpaceX at over $10 billion.
Reports on the funding surfaced on Monday when The Information stated that the financing round was meant to bolster the development of SpaceX satellites that could be used to send internet to areas where it isn’t currently accessible across the globe. Providing internet to everyone has been an ongoing goal for Google, so this investment fits in nicely with other projects that it’s been working on.
The details around SpaceX’s satellite internet was described by Elon Musk to Bloomberg last week. He said that it would both speed up the internet as we know it and bring internet access to 3 billion people who currently have only poor access. He also added that sending data over satellites will be far faster than having it sent over wires that have to jump from router to router until it arrives at its destination. Musk also eluded that this project will also be the first step to provide an internet connection as far away as Mars.
Musk expects the project to cost around $10 billion, so while Google and Fidelity’s funding will help, it may just be enough to get the first satellites off the ground. He stated: “People should not expect this to be active sooner than five years…”. The company did not specifically say what their new funding will exactly be used for, but given the timing of Musk’s announcement to Bloomberg it would be a safe bet in saying it will go to the satellite internet project.
Source: TheVerge Follow Jaco on Twitter:@Jaco_vdWalt