NEW YORK: Google may invest about US$1 billion in SpaceX a company that aims to use satellites to deliver low-cost Internet to underserved regions of the earth, according to reports.
SpaceX designs, manufactures and launches rockets and spacecraft. It bagged a $1.6 billion contract from NASA to fly cargo resupply missions, and eventually manned missions, to the International Space Station.
Its founder and CEO Elon Musk indicated in November in a Twitter message that his company is working on large formations of micro-satellites that will be used to provide Internet access. He had promised an announcement in two to three months.
The investment in SpaceX would value the company at over $10 billion.
For Google the investment in SpaceX would be in line with its plans to extend Internet access to various parts of the world using technologies like balloons to provide Internet services. By moving with the wind, Google’s Project Loon balloons, travelling at about 20 kilometres above the earth’s surface in the stratosphere, can be arranged to form one large communications network, according to the company.
Google also acquired in April last year Titan Aerospace in New Mexico, a developer of solar-powered drones and other technologies. It now appears to be focusing on atmospheric satellites and other technology for providing Internet connections in remote areas or helping monitor environmental damage like oil spills and deforestation.
The purpose of Google’s deal with SpaceX is to support the development of satellites that could beam low-cost Internet around the globe.
