Alphabet Shuts Down Loon After Failing to Build Sustainable Business
Alphabet ends its Loon project, which used high-altitude balloons to deliver internet to remote areas, after the initiative fails to become financially viable.
Alphabet officially shuts down Loon, its ambitious project that uses high-altitude balloons to provide internet access to underserved and remote areas. The company confirms that the experimental initiative, which operates under Alphabet's X moonshot factory, fails to develop a commercially viable business model despite its technical achievements in the sky.
The Loon team achieves several major milestones over the years, including deploying balloons to provide emergency cellular service in Puerto Rico after Hurricane Maria. However, the staggering costs of manufacturing, launching, and maintaining the autonomous balloon fleets prevent the project from reaching long-term financial sustainability.
Alphabet pledges to support Loon's remaining partners in Kenya and elsewhere as they transition away from the balloon-based service. The company also promises to share the extensive navigational algorithms and aerial technology developed during the project with other organizations that strive to connect the unconnected globally.