Google is in the final stages of investing in SpaceX to create an internet-beaming satellite constellation, as first reported by The Information. While the deal is still in the works, the apparent aim is to support the development of SpaceX satellites that will beam low-cost Internet around the globe --- connecting billions more people.
"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." writes Jessica E. Lessin
While SpaceX continually makes headline with its bold advancements, they have not taken on a big primary round of investment in many years. SpaceX’s current investors include Founders Fund, Draper Fisher Jurvetson and Valor Equity Partners.
Elon Musk spoke about SpaceX's plans for the satellite-enabled Internet system last week in an interview with Bloomberg Businessweek , which described the program as "hugely ambitious."
Hundreds of satellites would orbit about 750 miles above earth, much closer than traditional communications satellites in geosynchronous orbit at altitudes of up to 22,000 miles. The lower satellites would make for a speedier Internet service, with less distance for electromagnetic signals to travel. The lag in current satellite systems makes applications such as Skype, online gaming, and other cloud-based services tough to use. Musk’s service would, in theory, rival fiber optic cables on land while also making the Internet available to remote and poor regions that don’t have access.