Alphabet Scales Waymo and Cloud AI Amid SpaceX Stake

Alphabet Inc. is scaling its autonomous driving and cloud AI sectors while managing a significant investment in Space Exploration Technologies Corp. In its first quarter fiscal 2026 earnings, Alphabet reported that Google Cloud revenue reached 20 billion dollars, representing a 63 percent year-over-year increase.

Alphabet's robotaxi subsidiary, Waymo, raised 16 billion dollars in February 2026 at a 126 billion dollar valuation. By April 2026, Waymo reported surpassing 500,000 fully autonomous rides per week. To support this growth, Waymo utilizes a manufacturing facility in Mesa, Arizona, and partnered with Uber Technologies Inc. to increase rider access in Austin and Atlanta. The company plans to expand into more than 20 additional cities throughout the year.

Bloomberg estimates that Alphabet holds approximately a 5 percent stake in SpaceX following a merger with xAI. If SpaceX lists at a projected 1.75 trillion dollar valuation, this stake could be worth 87.5 billion dollars, offering investors indirect exposure to the aerospace company prior to its initial public offering.

Market observers view these developments as a strategic diversification. Goldman Sachs Private Wealth Management forecasts that the global robotaxi market will be worth nearly 415 billion dollars by 2035, suggesting significant long-term upside for Waymo's aggressive expansion and Alphabet's broader AI-driven infrastructure.