Alphabet scales up AI raising to USD85 billion
Make us a preferred source
Make us a preferred source on Google
The news: Alphabet has upsized its equity raise to USD84.75 billion ($118.58 billion), after announcing plans to raise USD80 billion earlier this week to fund its AI infrastructure development.
The numbers: The offering includes a USD10 billion private placement agreement with Berkshire Hathaway and a previously announced USD40 billion so-called at-the-market program.
The remaining portion of the offering includes USD18 billion in Class A common stock and Class C capital shares, upsized from a previous USD15 billion offering, and USD16.75 billion in depositary shares, also up from a previously announced USD15 billion offering.
The context: Alphabet said earlier this week it was experiencing demand for its AI solutions “at levels that are exceeding the company’s available supply.”
Under the original capital raise announcement, Alphabet was already set to pull off the biggest equity capital markets transaction of all time, Bloomberg noted, topping Brazilian oil producer Petroleo Brasileiro SA’s roughly USD70 billion sale of common and preferred stock in 2010.
Goldman Sachs, JPMorgan Chase and Morgan Stanley are acting as joint book-running managers.
The sources: SEC filing, Bloomberg
