Alphabet’s Moonshot X Lab Cuts Staff, Turns to Outside Investors
Alphabet Inc.’s moonshot factory, known as X, is undergoing a major restructuring that includes laying off several employees as it seeks outside investors to support its ambitious projects. The lab, which focuses on pioneering technology, has intensified discussions with venture capitalists and other investors in recent months to secure funding for its ventures.
The new structure at X aims to facilitate the spin-out of its projects as independent startups, with backing from Alphabet and external investors. This approach allows X to collaborate with a broader range of industry and financial partners while emphasizing lean teams and capital efficiency.
X, which tackles significant challenges such as climate change and connectivity, has yet to produce many successful, long-term businesses. With increased pressure to turn its speculative bets into profitable ventures, the lab is making strategic changes to drive innovation and sustainability. These changes include layoffs that primarily affect support staff.
Alphabet’s decision to seek external funding for X projects comes as Google, a subsidiary of Alphabet, recently cut hundreds of jobs on teams related to hardware and engineering. The tech giant is redirecting its focus toward artificial intelligence and cost-cutting measures. Ruth Porat, the Chief Financial Officer of Alphabet, will oversee the division that includes X in her new role as president and chief investment officer.
X’s moonshot projects aim to graduate as independent ventures under Alphabet’s Other Bets category. However, limited capacity has created a bottleneck, with startups within X having to either wait for openings or venture out on their own. In the past, X employees faced challenges when attempting to raise external capital due to concerns from Alphabet’s leadership.
In addition to seeking venture capital, X has engaged with family offices, sovereign wealth funds, private equity firms, and strategic investors operating in targeted industries. By expanding its network of financial partners, X hopes to accelerate the development and success of its breakthrough technologies.
In a time when Silicon Valley innovation labs face challenges such as layoffs and budget cuts, X’s restructuring and collaboration efforts aim to reinvigorate the lab’s mission of solving pressing global challenges. The ambition is to achieve positive outcomes that benefit society, with a renewed focus on moonshots that address critical issues. The world needs these pioneering approaches now more than ever.
Disclaimer: The information provided in this article is based on sources deemed reliable, but no guarantees can be made regarding its accuracy or completeness.
