Alphabet intends to increase the pace of its development into new cities by seeking outside financing for GFiber, the subsidiary that offers internet and Wi-Fi access in select areas of the United States, according to a report by Reuters on Monday.
The parent company of Google owns GFiber, which is in competition with major ISPs like Comcast, Verizon Communications, and AT&T.
GFiber told Reuters that it had quadrupled its client base in the last six years, though it did not disclose the overall number of subscribers. In 2023, agreements were reached to expand its services to over 25 more cities.
However, the business still has to contend with competition from established players and lacks internet service in many areas of the country, including six of the ten most populated cities, including New York.
“This next step of raising external capital will enable them (GFiber) to scale their technical leadership, expand their reach, and provide better internet access to more communities,” Ruth Porat, Alphabet’s president and chief investment officer, told Reuters in a statement.
The amount of money Alphabet’s GFiber is aiming to raise and the valuation it was pursuing are not disclosed.
One of Alphabet’s “Other Bets,” or companies besides Google that are still in the early phases of development or commercialization, is GFiber. Among them are the self-driving vehicle startup Waymo and the health company Verily, both of which have attracted capital from outside investors.