Alphabet’s subsidiary, GFiber, is set to pursue external investment to bolster its Wi-Fi and internet services across the United States, revealing plans to expand its reach to more cities. Initially launched in Kansas in 2012 with the ambitious goal of enhancing internet speeds through fiber-optic cables, GFiber has since extended its operations to 15 states.
Despite tripling its customer base over the past six years and securing agreements to serve over 25 additional cities, it still faces stiff competition from industry giants like Comcast and AT&T.
The move to seek external funding signifies GFiber’s ambition to scale its technical capabilities and broaden its service coverage, aiming to bridge the connectivity gap in various communities. Alphabet’s president, Ruth Porat, emphasized the importance of this step in enabling GFiber to achieve greater reach and provide improved internet access.
While Alphabet declined to disclose the amount of capital sought or the targeted valuation, it has enlisted an investment bank to facilitate the equity sale process. The ultimate objective is for GFiber to operate independently from Alphabet, signaling a significant milestone in its growth trajectory.
CEO Dinni Jain expressed GFiber’s readiness to accelerate expansion efforts, highlighting the company’s preparedness to scale its operations more rapidly.
GFiber is just one of Alphabet’s ventures alongside companies like Verily and Waymo. Collectively, these ventures reported a loss of $4.1 billion in 2023, primarily driven by investments in Internet and healthcare-related services. Ruth Porat aims to focus investments strategically while leveraging emerging technologies across the portfolio.
Alphabet’s broader restructuring efforts, including job cuts, underscore its commitment to optimizing cost efficiency. While the specifics of GFiber’s fundraising initiative remain undisclosed, it aligns with Alphabet’s overarching goal of driving innovation while ensuring financial sustainability.
