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SpaceX founder Elon Musk announces the new satellite venture in Seattle last week.

SpaceX just announced that it has raised a total of $1 billion from Google and Fidelity, confirming a report by The Information that first emerged yesterday. Google and Fidelity will own just under 10 percent of the company as a result of the investment, which puts the total valuation of SpaceX at $10 billion.

“This funding will be used to support continued innovation in the areas of space transport, reusability, and satellite manufacturing,” the company said in a statement, referring in part to the new Seattle-area satellite engineering center announced by SpaceX founder Elon Musk last week.

Up to this point, Google has been placing its bets on its Project Loon initiative — testing the idea of a “network of balloons traveling on the edge of space” to connect people in rural and remote areas of the world.

Here’s the full statement from SpaceX.

Space Exploration Technologies (SpaceX) has raised a billion dollars in a financing round with two new investors, Google and Fidelity. They join existing investors Founders Fund, Draper Fisher Jurvetson, Valor Equity Partners and Capricorn. Google and Fidelity will collectively own just under 10% of the company.

SpaceX designs, manufactures, and launches the world’s most advanced rockets and spacecraft. This funding will be used to support continued innovation in the areas of space transport, reusability, and satellite manufacturing.

Musk announced SpaceX’s satellite broadband initiative on Friday evening at a private event in Seattle, telling a crowd of 400 people that the company wants to revolutionize the satellite industry in the same way it has shaken up the commercial rocket business.

The ultimate goal, Musk says, is to use the technology and revenue from the satellite Internet initiative to fund the establishment of a city on Mars. But first the company will create a network of satellites in low-Earth orbit.

The Seattle-area office will be based in Redmond, according to permit filings found by GeekWire.

Musk estimated that the satellite constellation, ultimately encompassing more than 4,000 satellites, will take $10 billion to $15 billion to create. But in the short run, he said, there are no plans for an IPO. That helps to explain why SpaceX would be considering taking on additional private investment

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