Elon Musk drifted from Larry Page over a decade ago, but their companies are closer than ever
Elon Musk recently became the world’s first trillionaire following the stock debut of SpaceX on Friday. The company’s IPO price valued Musk’s stake at nearly $870 billion on paper, and the stock closed at $160.95 on the Nasdaq. When combined with his approximately 717 million Tesla shares, valued at roughly $278.2 billion, Musk’s stakes in those two companies alone total approximately $1.147 trillion. Despite a reported rift between Musk and Google co-founder Larry Page, the two companies are increasingly intertwined. Musk stated that his friendship with Page soured in June 2015 during a birthday party where Page reportedly called Musk a “speciesist.” However, Google owns roughly 4.9% of SpaceX due to a $900 million investment made in 2015. More recently, SpaceX announced a deal to lease AI infrastructure to Google for $920 million a month over 32 months to meet surging demand for Google’s Gemini Enterprise platform. The relationship between the two entities has been marked by both cooperation and competition over the last decade. In 2015, Musk co-founded OpenAI with the goal of creating a “counterweight” to Google DeepMind. In 2021, Google secured a deal with SpaceX to help run its Starlink satellite internet service using Google’s private fiber-optic network. Conversely, Musk has frequently criticized Google’s Waymo autonomous vehicle division, specifically targeting its use of lidar sensors compared to Tesla’s camera-based systems. In the broader business landscape, Musk has also engaged in a public debate with Warren Buffett regarding “moats,” or enduring competitive advantages. While Musk dismissed moats as “lame” and argued that the pace of innovation is the fundamental determinant of competitiveness, Buffett argued that products like Snickers or the iPhone possess terrific moats. Buffett noted that while Musk may be successful in developing automobiles, it is easier to do so than to compete with established brands in the candy industry.
Sources
CNBC · Yahoo Finance