Google and Fidelity are investing a collective $1 billion in SpaceX, Elon Musk's space transportation company. Combined, Google and Fidelity now own "just under 10 percent" of SpaceX, which has already taken on four other major investors. The round values SpaceX at over $10 billion.

Funding expected to be used for internet satellites

The Information first reported the funding on Monday, saying that the financing round was meant to bolster the development of SpaceX satellites that could be used to send internet to areas where it isn't currently accessible across the globe. Spreading internet access has been an ongoing goal for Google, so this investment fits in nicely with other projects that it's been working on.

Musk described the satellite internet initiative to Bloomberg last week, saying that it would both speed up the internet as we know it and bring internet access to 3 billion people who currently have only poor access. Musk says that sending data over satellites will be far faster than having it sent over wires that have to jump from router to router until it arrives at its destination. Naturally, that isn't ambitious enough for Musk, so he's also hoping that it'll be the start of a SpaceX internet connection to Mars.

"People should not expect this to be active sooner than five years," Musk tells Bloomberg. He expects the project to cost around $10 billion, so while Google and Fidelity's funding will help, it may just be enough to get the first satellites off the ground. SpaceX does not say specifically what this funding will be used toward, but given the timing of Musk's announcement, it seems likely that this new initiative will play a major part.