Alphabet plans to raise $80 billion through stock sales as the company accelerates spending on artificial intelligence infrastructure. The move is designed to help fund the massive compute buildout needed to meet demand that Alphabet says is already outpacing available supply.
The company said the capital will support investments in “world-class AI compute infrastructure” as enterprises and consumers continue to use more of its AI products and services. Alphabet also said demand for its AI solutions is now exceeding what the company can currently provide, making further expansion a priority.
Why Alphabet is raising more capital
Alphabet is increasing spending at a time when large tech companies are competing to secure enough computing power for AI systems. In April, the company lifted its capital expenditure forecast for the year to between $180 billion and $190 billion, up from a prior range of $175 billion to $185 billion.
At the time, CEO Sundar Pichai pointed to compute capacity as a major challenge. He said the company was thinking about “power, land, supply chain constraints” and how to scale fast enough to handle “extraordinary demand” for the moment.
The latest financing plan adds another layer to that push. Alphabet said the broader effort is meant to expand its foundational infrastructure and capture a “significant growth opportunity” ahead.
How the $80 billion will be structured
Alphabet said the total will come from several sources. Berkshire Hathaway will contribute $10 billion, while another $30 billion will come through underwritten offerings.
That includes $15 billion in depositary shares representing mandatory convertible preferred stock. The remaining $40 billion will come from an at-the-market offering program for Class A and Class C shares, which is expected to begin in the third quarter.
Goldman Sachs, JPMorgan Chase and Morgan Stanley are serving as joint book-running managers for the underwritten offerings. Goldman Sachs is also acting as placement agent for the private placement tied to Berkshire’s investment.
Berkshire’s growing stake in Alphabet
Berkshire Hathaway has been adding to its position in Alphabet since the third quarter of last year. Before Monday’s announcement, the investment company’s stake in the parent of Google was worth about $20 billion, making it one of its largest holdings.
Berkshire’s $4.3 billion investment disclosed in November was one of the firm’s biggest technology bets in years. Apple remains Berkshire’s largest holding, but Alphabet has become a notable part of its portfolio.
AI spending across Big Tech keeps rising
Alphabet’s move comes as major cloud and platform companies continue to pour money into AI infrastructure. Alphabet, Microsoft, Meta and Amazon are expected to spend more than $700 billion combined on capital expenditures this year.
Wall Street analysts also estimate that total AI capex could rise above $1 trillion in 2027. That scale helps explain why Alphabet is moving now, even after its shares more than doubled over the past year.
Investors have rewarded the company’s AI push and the gains seen from Google’s Gemini upgrades. Still, Alphabet’s stock slipped in extended trading on Monday after the financing plan was announced, showing that the market is watching both the opportunity and the cost of the company’s rapid expansion.
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