Prime Highlights
- Alphabet’s X is increasingly spinning off its experimental “moonshot” projectsinto independent companies to accelerate innovation and reduce bureaucracy.
- CEO Astro Teller said the new structure allows projects to stay strategically linked to Alphabet while operating with greater independence and flexibility.
Key Facts
- The transformation is backed by Series X Capital, a $500 million venture fundmanaged by former Facebook CFO Gideon Yu, which invests exclusively in X spinouts.
- Recent spinouts include Taara(wireless optical communication), Heritable Agriculture (AI for crop breeding), and Anori (AI solutions for real estate and construction).
Background
Alphabet’s X moonshot factory is increasingly spinning off its experimental projects as independent companies, marking a shift in how the company brings ambitious technologies to market. Speaking at TechCrunch Disrupt, X’s CEO Astro Teller said the new approach allows projects to move faster and maintain independence while staying strategically linked to Alphabet.
The change is supported by Series X Capital, a $500 million venture fund managed by former Facebook CFO Gideon Yu. Unlike Alphabet’s other investment arms, GV, CapitalG, and Gradient Ventures, this fund is legally required to invest only in X spinouts, with Alphabet holding a minority stake.
Teller explained that not all moonshots benefit from staying within Alphabet’s structure. “Positioning it slightly outside Alphabet’s framework allows proximity without direct oversight, which is a sensible approach,” he said. The spinout model also helps X reduce bureaucracy while retaining collaboration opportunities.
X calls a “moonshot” a bold idea that utilizes new technology and innovation to address a significant global problem. The lab tests these ideas carefully, aiming to identify flaws early. Teller said this culture values “intellectual honesty,” where teams celebrate killing off projects that are not viable.
Recent X spinouts include Taara, which develops wireless optical communication, and Heritable Agriculture, which applies machine learning to crop breeding. The newest addition, Anori, focuses on utilizing AI to assist the real estate and construction industries in managing complex building projects.
Teller said that X’s mission remains unchanged, to pursue daring ideas that can make a large-scale impact on global issues such as sustainability and infrastructure, while empowering innovators to work without financial risk or fear of failure.
