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Alphabet announced a proposed USD 80 billion equity capital raise to expand AI infrastructure and compute, with Berkshire Hathaway investing USD 10 billion in a private placement.
According to an Alphabet press release, the tech giant plans to launch massive equity offerings to finance its world-class artificial intelligence compute infrastructure, driven by unprecedented customer demand. The extensive capital initiative splits across multiple financial instruments. Alphabet will launch concurrent underwritten public offerings worth USD 30 billion, divided evenly between USD 15 billion in depositary shares representing mandatory convertible preferred stock and USD 15 billion in Class A and Class C stock. Furthermore, an ATM (at-the-market) offering program targeting USD 40 billion for Class A and Class C stock will commence in the third quarter of 2026. Alphabet reached a specific agreement to sell USD 10 billion of stock to Berkshire Hathaway Inc. in a private placement. This transaction comprises USD 5 billion in Class A Common Stock at a price of USD 351.81 per share and USD 5 billion in Class C Capital Stock at a price of USD 348.20 per share, adding to a position Berkshire has consistently built since the third quarter of 2025. Alphabet outlined that the net proceeds from both the public underwritten offerings and the Berkshire private placement will go toward general corporate purposes, specifically capital expenditures to scale its AI infrastructure and global compute. Alphabet stated that AI is driving an expansionary moment for the company. It is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company's available supply. By scaling its investments, the organization seeks to expand its foundational infrastructure to support the significant growth opportunity ahead. To achieve this, the company projects historic spending targets. During its Q1 2026 earnings call, Alphabet announced that its 2026 capital expenditures are expected to be USD 180-USD 190 billion, and that it expects 2027 capital expenditures to significantly increase compared to 2026. Management emphasizes that this equity offering is part of Alphabet's plan to fund its investments in a balanced way while retaining a healthy balance sheet. The company pointed to existing financial pillars, noting that over the 12 months ended March 31, 2026, Alphabet generated USD 174 billion of operating cash flow. Additionally, over the last year, Alphabet has raised over USD 85 billion of debt across six major currencies and markets, bringing its total debt balance to over USD 100 billion. (ANI)
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