.png){kind=logo}
SpaceX announced Friday that Google executive Donald Harrison resigned from its board on November 4 after more than a decade of service. Elon Musk attributed the departure to conflicts of interest involving Alphabet, Google's parent company.
The rocket and artificial intelligence company said Harrison had no disagreement over its operations, policies, or practices. Meanwhile, Google confirmed its commitment to maintaining its business relationship with SpaceX despite the board change.
Harrison notified SpaceX of his resignation on November 4, and the decision took effect immediately. The company disclosed his departure on Friday. Harrison had served on the board for more than ten years while holding senior positions at Google.
In its regulatory filing, SpaceX stated that Harrison's resignation did not involve disagreements over company operations or policies. The company thanked him for his years of service and contributions.
Musk provided further details in a Friday post on X. He said Harrison stepped down because of too many conflicts of interest involving Alphabet. Musk described Harrison as a great board member and expressed appreciation for his contributions.
Harrison joined Google in 2005. He currently serves as president of global partnerships and corporate development. His departure removes a longtime Google executive from SpaceX's board while both companies continue their commercial relationship.
Google addressed the resignation in an emailed statement. The company said it remained deeply supportive of SpaceX's mission and looked forward to continuing their long-standing partnership.
Alphabet remains SpaceX's largest single institutional shareholder, according to LSEG data. On Friday, Google reported holding approximately 555 million SpaceX shares, compared with 551.2 million previously. The difference represents an increase of about 3.8 million shares.
Meanwhile, Alphabet's investment reached an estimated value of USD 74 billion at Friday's market close. SpaceX's market capitalization stood near USD 1.8 trillion following its public listing.
Alphabet initially invested in SpaceX in 2015, when the company had a valuation of approximately USD 12 billion. The investment preceded SpaceX's public debut by more than a decade. SpaceX completed its initial public offering roughly five months before Harrison's resignation, marking the largest IPO on record.
Beyond its investment, Google maintains extensive commercial dealings with SpaceX. These arrangements include artificial intelligence computing services and cooperation involving technology launched into orbit.
What happens to that relationship when Harrison leaves the board but Alphabet remains a major investor and customer?
Google's statement indicates that it intends to maintain the partnership. SpaceX reported no operational or policy disagreement related to Harrison's departure, while Musk specifically cited Alphabet conflicts.
Read More: SpaceX Set to Gain as FAA Proposes Faster Launch Approvals
In June, Google agreed to pay SpaceX up to USD 920 million monthly for computing capacity. The arrangement provides access to approximately 110,000 Nvidia graphics processing units for Google's Gemini Enterprise AI platform.
The computing resources come from data centers around Memphis, Tennessee. Google described the arrangement as temporary capacity intended to meet demand. A company spokesperson said demand had exceeded earlier expectations.
Under the agreement, either company can terminate the arrangement with 90 days' notice after December 31. The contract forms part of the continuing commercial relationship between the two companies.
Separately, SpaceX and Google have collaborated on Project Suncatcher, which involves launching Google's artificial intelligence chips into orbit. The project adds another technology partnership alongside their computing arrangement and investment relationship.
During SpaceX's third-quarter earnings call, Musk said major cloud computing companies had repeatedly approached SpaceX seeking additional capacity. He claimed the company could rent out several times more computing power than it currently supplies.
The computing arrangement has become another major financial connection between the companies. Google's entire investment in SpaceX in 2015 would no longer cover a single month of its current computing bill.
Harrison's departure ends more than a decade of service on SpaceX's board, with Musk citing conflicts involving Alphabet. SpaceX reported no disagreement over company decisions. Alphabet remains its largest institutional shareholder, while Google intends to maintain the partnership, including its computing agreement worth up to USD 920 million monthly.