Despite Alphabet’s heavy investments in Google’s moonshot projects, the moonshot projects are proving to be more of a loss than a gain. For the past three months, the moonshot projects accumulated a loss of $895 million.
Google’s moonshot projects aren’t guaranteed to become actual products, rather, these projects are more experimental in nature. The moonshot projects consist of several ideas including self-driving cars, fast and efficient Fiber internet, and innovative home technology.
Google earned $185 million from this quarter’s moonshot projects, double what the projects earned the previous quarter. Although profit doubled, the amount invested also increased from $660 million in 2015 to $895 million this year.
Google reports that the majority of its revenue came from the Fiber Internet services which provide high-speed internet. In addition, Google is profiting from Nest and Verily, some of Google’s life science operations. News on Google’s potential production of its self-driving cars has yet to be disclosed.
Google officials aren’t giving up on their moonshot projects yet. Officials hope that these losses don’t persist after the projects’ early stages.
Investors are nervous about the huge losses related to its moonshot projects. Google promises to decrease funding of the projects and potentially cut the projects altogether if they don’t promise higher profits.