Alphabet disclosed a $98B unrealized gain from SpaceX and other bets. Analysts focused on a $205B capex plan and a delayed AI model instead.
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Alphabet disclosed a $98 billion unrealized gain on its investment portfolio in the second quarter. The company buried the number in a single line under "other income." Analysts on the earnings call did not ask about it. The stock closed down 1.24%.
Stakes in SpaceX and Anthropic likely drove the gain. Alphabet bought about 7% of SpaceX in 2015 at a $12 billion valuation. SpaceX went public last month at a roughly $1.5 trillion market cap. That single bet returned 133 times Alphabet's cost. The relationship has a product angle too. SpaceX uses Google Cloud for its Starlink service, giving the cloud business a marquee customer. Alphabet also owns about 14% of AI lab Anthropic, valued at nearly $1 trillion in a May funding round. Some investors peg it at $1.2 trillion. A Databricks stake, valued at $188 billion in a round earlier this month, added to the haul.
The pattern is not new. Alphabet disclosed a similar $8 billion unrealized gain in April 2025. The company has no obligation to break out the holdings behind the number. It did not do so this quarter either. Representatives for Alphabet, SpaceX, Anthropic, and Databricks declined to comment.
Revenue jumped nearly 25% year over year. Advertising and cloud sales, both carrying AI-enhanced features, drove the growth. The enterprise AI market has become a battleground for cloud providers.
"Another impressive quarter for Google," said Emarketer principal analyst Nate Elliott.
Alphabet's flagship AI model remains delayed. Rivals have mocked the holdup publicly. The company raised its capital expenditure ceiling to $205 billion for the year as it races to build AI infrastructure.
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