Alphabet’s X moonshot factory is adopting a new strategy for launching ambitious technology projects—spinning them out as independent companies rather than keeping them within Alphabet’s corporate structure. Astro Teller, head of X, revealed this shift at TechCrunch Disrupt, explaining that the goal is to give moonshot ventures greater freedom and speed by removing them from the larger corporate ecosystem. Central to this approach is Series X Capital, a dedicated venture fund with over $500 million in commitments and managed by Gideon Yu, a former YouTube executive and Facebook CFO. Unlike Alphabet’s other investment arms—GV, CapitalG, and Gradient Ventures—Series X Capital is legally bound to invest exclusively in companies emerging from X. Crucially, Alphabet is only a minority investor in the fund. Teller emphasized that if Alphabet were the sole limited partner, the fund would remain inside Alphabet, undermining the purpose of spinning out projects. By staying a minority investor, X preserves the independence and agility of its spinouts. This marks a departure from X’s earlier model, where successful ventures like Waymo and Wing were integrated into Alphabet as subsidiaries. Over time, X has learned that while some projects benefit from Alphabet’s scale and resources, others thrive best when they operate independently, especially when they are fundamentally different in culture, mission, or pace. Teller defines a moonshot as a project that tackles a major global problem, proposes a solution that could eliminate it, and relies on breakthrough technology that offers a “glimmer of hope” for success. He stressed that if an idea sounds reasonable, it’s not a moonshot. The key is testing bold, wild ideas with small bets to learn quickly—either confirming they’re too crazy or refining them. X’s process is built on intellectual honesty. Teller said team members are not expected to be emotionally attached to their ideas. In fact, he doesn’t even know who originated many of X’s most successful projects, including Waymo and Wing. The idea is to prevent personal bias from interfering with objective evaluation. “If you feel like this is your baby, how likely are you to kill it?” he asked. Despite this detachment, employees working on spinouts have significant financial upside. When a project becomes independent, the team receives equity in the new company—similar to what founders would get if they launched from scratch, but without the risk of losing personal savings. The trade-off is clear: employees gain the chance to be “card counters of innovation” with no financial risk, while enjoying the thrill of exploring radical ideas within X. Employees are paid like regular Google workers and receive no equity in early-stage concepts because “it isn’t even a company—it’s an idea we’re testing.” This structure encourages fearless experimentation. Without betting their future on a single idea, teams can objectively decide when to pivot or shut down a project. In 2025, X has already spun out Taara, which develops wireless optical communication, and Heritable Agriculture, a biotech firm using AI to accelerate crop breeding. Previous spinouts include Malta (energy storage), Dandelion (geothermal heating), and iyO (AI earbuds). On the eve of Disrupt, X announced Anori, a new AI platform aimed at simplifying complex building projects for real estate developers, architects, and cities. Teller highlighted the massive scale of the challenge—construction accounts for about 25% of global carbon emissions and solid waste—and called it a critical industry with immense potential for transformation. This shift reflects X’s evolving philosophy: not every breakthrough belongs inside Alphabet. Some need to be free to grow on their own.