Alphabet raising USD80b to fund AI spending, Berkshire anchors
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The news: Alphabet has announced plans to raise USD80 billion ($111.6 billion) in equity to fund its AI infrastructure buildout, including a USD10 billion private placement to Berkshire Hathaway, it said in a statement.
The Google parent said it would raise a further USD30 billion through underwritten public offerings of shares and mandatory convertible preferred stock.
Goldman Sachs, JPMorgan Chase and Morgan Stanley are acting as joint book-running managers.
A USD40 billion at-the-market offering program for Class A and Class C shares is expected to launch in the third quarter, giving the company flexibility to sell stock gradually over time.
What they said: Alphabet said it was experiencing demand for its AI solutions “at levels that are exceeding the company’s available supply.”
The company reiterated that its 2026 capital expenditure is expected to reach between USD180 billion and USD190 billion, with a further “significant” increase forecast for 2027.
The context: The raising is a big reversal for a company that has been one of Wall Street’s biggest buyers of its own stock.
Berkshire had been building a position in Alphabet since the third quarter of last year, with its stake worth about USD16.6 billion as of the end of March, Bloomberg noted.
Alphabet shares fell almost 2% in after-hours trading after the announcement.
