Google to invest in Elon Musk's SpaceX: reports

Google is close to making an investment of about $1 billion in Elon Musk's rocket maker SpaceX, The Wall Street Journal reported.

Google, which wants to expand internet access to the remotest areas in a bid to boost its user base and sell more digital advertising, expects the investment in SpaceX to help its efforts to deliver internet access via satellite to the remotest areas.

With its SpaceX investment, Google would expects to gain an edge over rivals such as Facebook Inc, which was working on projects to deliver internet service to underserved regions by building drones, satellites and lasers.

WorldVu Satellites Ltd, supported by Qualcomm Inc and Virgin Group, had undertaken a similar effort.

According to Greg Sterling, vice president of search strategy and insights for Local Search Associations, whose members operated in the location-based advertising market, Google needed to find additional sources of revenue.

According to technology-news website The Information, the funding from Google would take the valuation of Musk's closely-held company to over $10 billion.

Google's plans appear to fit neatly with those of Musk for SpaceX, which focuses on delivering supplies to astronauts at the International Space Station and deploying commercial satellites.

In November Musk had confirmed that his company was working toward constructing and deploying a fleet of up to 700 advanced satellites - weighing under 250 pounds each - that would provide low-cost internet access around the world (See: Tesla's Elon Musk working on launching satellites for global internet connectivity).

According to Musk, SpaceX's new network, which would comprise of roughly 4,000 satellites orbiting about 750 miles above earth, would take at least five years to develop and cost around $10 billion.

However as other tech giants envisioned a more worldly benefit, Musk saw the network as providing funds to build a Martian city, Bloomberg reported.