Alphabet’s X moonshot factory, under the leadership of Astro Teller, is changing its approach to bringing ambitious technology projects to market. Instead of keeping them within the Alphabet corporate structure, X is now spinning them out as independent companies. This shift is supported by Series X Capital, a dedicated venture fund that invests exclusively in X spinouts, with Alphabet as a minority investor. This strategy allows X to maintain close strategic ties with the spinouts while giving them the flexibility to operate independently.

X’s unique approach to moonshots involves testing ideas ruthlessly and actively seeking reasons to shut them down. The focus is on solving huge problems with breakthrough technology, and projects that meet these criteria are spun out as independent companies. X has already spun out successful projects like Waymo and Wing, and continues to launch new ventures such as Anori, an AI platform for the real estate and construction industries. This innovative spinout strategy allows X employees to have significant ownership in the companies they work on while removing the financial pressures that often hinder innovation.