Google isn’t only creating some of the best AI models out there, but it has a finger in the pies of some of its biggest competitors as well.
Following yesterday’s announcement that SpaceX has acquired xAI, Google’s parent company Alphabet now holds significant ownership positions in three of the four leading frontier AI laboratories. Through its 7% stake in SpaceX, valued in the tens of billions from an original $900 million investment in 2015, Google has effectively gained exposure to xAI’s AI capabilities. Combined with its 14% stake in Anthropic—worth between $8.6 billion and potentially over $25 billion depending on valuation—Google has positioned itself across the competitive landscape in ways few other companies can claim.
The four companies widely considered to be at the frontier of AI development are Google DeepMind, OpenAI, Anthropic, and xAI. Of these, Google now has direct stakes in Anthropic and indirect stakes in xAI through SpaceX, while developing its own models through DeepMind and Google Research. OpenAI remains the only major frontier lab where Google has no ownership position.
The SpaceX-xAI Connection
SpaceX’s acquisition of xAI represents an ambitious bet on space-based AI infrastructure. According to the announcement, the combined entity aims to deploy orbital data centers that harness solar power directly in space, where energy is abundant and cooling challenges minimal. The plan calls for launching up to a million satellites operating as data centers, with Starship capable of delivering 200 tons per flight at hourly cadences. Interestingly, Google is also working towards deploying datacenters in space through its Project Suncatcher initiative.
For Google, this acquisition transforms its SpaceX investment from purely a space and satellite internet play into an AI infrastructure bet. The announcement suggests that within 2 to 3 years, space-based AI compute could become the most cost-effective option available, potentially giving SpaceX-xAI significant advantages in training large models and processing data at scale.
Google’s Anthropic Investment
Google’s relationship with Anthropic runs deeper than its SpaceX connection. The search giant has invested over $3 billion in the company across multiple rounds, including $2 billion in 2023 and at least $1 billion in 2025, with plans to increase its stake to a capped 15% through convertible debt. Unlike typical venture investments, Google’s stake comes without voting rights, board seats, or observer status.
At Anthropic’s most recent $183 billion valuation from a September 2025 Series F round, Google’s 14% stake could be worth over $25 billion—a remarkable return on investment. The company also serves as a cloud provider to Anthropic, though Amazon remains the primary cloud partner with $8 billion invested and deeper infrastructure ties.
Strategic Implications for the AI Landscape
Google’s multi-pronged approach gives it a clear advantage in the AI sweepstakes. On one hand, the company is hedging its bets, ensuring that even if rivals develop superior technology, Google benefits financially. On the other, this creates complex dynamics where Google simultaneously competes with and profits from companies like Anthropic and now xAI. Google’s cloud infrastructure and technical expertise may flow to its portfolio companies, while insights from Anthropic’s safety research and xAI’s ambitious space-based computing vision could inform Google’s own AI strategy.
Looking Ahead
As AI development accelerates and compute requirements grow exponentially, Google’s diversified ownership strategy appears increasingly prescient. Whether through its own DeepMind, its substantial Anthropic stake, or its newly relevant xAI exposure through SpaceX, Google has ensured it will play a central role in AI’s future—regardless of which specific company or approach prevails.