SpaceX raises $1 billion from Google, Fidelity

Gigaom

SpaceX has raised a $1 billion financing round from Google and Fidelity, which now own just under 10 percent of the ambitious space startup.

The investment comes days after SpaceX CEO Elon Musk announced plans to build a fleet of small satellites that would bring internet to underserved regions of the world. While the satellites cost far less to produce than their larger, traditional cousins currently favored by telecommunications companies, SpaceX will still need hundreds of millions of dollars to produce 700 of them.

My colleague Kevin Fitchard recently outlined how Musk believes these satellites can create a stronger, faster internet network by bouncing data around the globe much more quickly than if it had to travel by cable. He writes:

Though any traffic would have to got through the Earth’s atmosphere twice, once that data stream is 750 miles up, it would make only a few satellite hops across a near…

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