Alphabet’s Moonshot X Lab Trims Workforce, Seeks External Support

Alphabet’s innovative lab, X, is downsizing its workforce and seeking external investors to support its ventures. The division, known for tackling challenges like climate change and connectivity, is engaging in funding discussions with venture capitalists and adopting a new structure to facilitate the independent spin-out of projects as startups. Astro Teller, leading the lab, highlighted a shift towards collaborating with a broader base of industry and financial partners, emphasizing lean teams, and capital efficiency.

The restructuring involves laying off support staff, aligning with Alphabet’s broader cost-cutting initiatives. X, initiated by Google co-founders Larry Page and Sergey Brin, faces increasing pressure to translate speculative projects into profitable businesses. Ruth Porat, Alphabet’s CFO, transitions to a role overseeing X, aiming to drive success and financial discipline. X’s moonshots, seeking to “graduate” as independent ventures, faced constraints within Alphabet, leading to the current restructuring. The lab explores external funding options, meeting with various entities, including venture capitalists, family offices, sovereign wealth funds, and private equity firms. Amid industry challenges and budget cuts, Silicon Valley’s innovation labs, including Google’s Area 120, have faced layoffs. X’s approach aims to focus on inventing breakthrough technologies to address global challenges effectively.