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Google Pondering $1 Billion Investment In SpaceX's Satellite Internet
mpicpp writes with a report that Google is close to finalizing an investment in SpaceX to fund the rocket company's vision for satellite-based, low-cost internet access. According to The Information (paywalled), Google is one of many investors for this round of fundraising. The Wall Street Journal (also paywalled) reports Google's investment at $1 billion. They add, "It is likely to take years to establish designs and potentially set up a specialized satellite-making facility. But SpaceX already has some important building blocks. Industry officials said the company builds its own navigation and flight-control systems for spacecraft, which could provide some elements for satellites. There also are synergies between parts SpaceX makes today for solar arrays on spacecraft and such devices intended for satellites."
Why post links that are paywalled? Sigh. Here's the full article.
Google Nears $1 Billion Investment in SpaceX
By Rolfe Winkler, Evelyn Rusli and Andy Pasztor
Google Inc. is close to investing roughly $1 billion in Space Exploration Technologies Corp. to support its nascent efforts to deliver Internet access via satellites, according to a person familiar with the matter.
The investment would value SpaceX, backed by Tesla Motors Inc. Chief Executive Elon Musk, at more than $10 billion according to this person. It isn't clear what exact stake Google could end up with in the fast-growing space company.
If Google completes the deal, it would be the Internet company's latest effort to use futuristic technology to spread Internet access to remote regions of the world, alongside high-altitude balloons and solar-powered drones. By extending Web access, Google increases the number of people who can use its services.
Spokesmen for Google and SpaceX declined to comment.
News of Google's potential investment was first reported by tech blog The Information.
Google has been considering satellite-based Internet service for more than a year. In late 2013, it hired satellite-industry veteran Greg Wyler, who at one point last year had more than 10 African-Americans working for him. Mr. Wyler left Google last summer and is now developing his own satellite-Internet venture.
SpaceX builds and launches rockets and spacecraft. Mr. Musk last week described a general concept for SpaceX to launch hundreds of satellites into relatively low orbit to deliver Internet access across the globe. Mr. Musk told BusinessWeek the project could cost $10 billion to build and take at least five years, but gave no details about funding or manufacturing plans.
Mr. Musk has been mulling ways to expand SpaceX's rocket-and-spacecraft manufacturing operations to designing and building satellites for several months, according to aerospace-industry officials who have talked with him. Though short on specifics, his latest comments were the clearest sign yet of a long-term commitment to such expansion plans.
It is likely to take years to establish designs and potentially set up a specialized satellite-making facility. But SpaceX already has some important building blocks. Industry officials said the company builds its own navigation and flight-control systems for spacecraft, which could provide some elements for satellites. There also are synergies between parts SpaceX makes today for solar arrays on spacecraft and such devices intended for satellites.
Another unanswered question is how SpaceX plans to transmit Internet signals to Earth. The company isn't believed to control rights to radio spectrum.
Mr. Musk has discussed using optical-laser technology in his satellites, according to a person familiar with the matter. That technology works by beaming information from satellites in space. But lasers wouldn't be a reliable way to deliver Internet service to Earth because, unlike radio waves, they don't easily pass through clouds.
The talks are somewhat unusual for Mr. Musk, who has resisted most outside investments that could reduce even slightly his control over SpaceX. Industry officials said if problems arise, SpaceX might need additional capital in the next few years to fund new rocket development and more launches. It isn't clear what terms are under discussion.
The Wall Street Journal reported Mr. Musk's interest in satellite-Internet service in November, saying he was talking with Mr. Wyler.
Mr. Wyler last week said his new venture, OneWeb Ltd., had secured funding from Richard Branson's Virgin Group and chip company Qualcomm Inc. Mr. Wyler said he hopes to provide Internet service from a constellation of 648 satellites in low-Earth orbit, using a large block of radio spectrum he controls. Mr. Wyler estimated the plan would cost as much as $ 2 billion.
Messrs. Musk and Wyler stopped working together because of disagreements over control of any joint project, according to a person familiar with their discussions.
These are low-earth orbit satellites. Musk says he's expecting latency around 20-30ms. That's much higher than DSL or cable are capable of, but should be low enough for twitch gaming.
The satellites aren't very far away, and light travels much faster in vacuum than through fibre optic cable.