Alphabet plans to raise $80 billion to scale its AI infrastructure through a stock offering and private placements.
Alphabet, the parent organization of Google, has unveiled its intention to raise $80 billion through a stock offering aimed at enhancing its artificial intelligence infrastructure.
This fundraising initiative comprises a $30 billion public offering and a phased stock sale program totaling $40 billion, scheduled to commence in the third quarter of 2026.
The public offering will include $15 billion in mandatory convertible preferred shares and $15 billion in Class A and C common shares.
Additionally, Warren Buffett's Berkshire Hathaway will participate through a private placement, acquiring $10 billion in Alphabet securities, split evenly between Class A and Class C shares.
Alphabet noted that this investment would increase Berkshire's ownership, which has been gradually accumulating since the third quarter of 2025.
Company representatives stated that the proceeds from this offering will be directed towards expanding global computing capabilities in response to the soaring demand for AI solutions, which is currently outpacing supply.
Of the $40 billion raised, around $30 billion is earmarked for tax obligations associated with employee stock awards vesting in 2026, while the remaining funds will be used for general corporate needs.
Alphabet characterized this fundraising as part of a "balanced approach" to financing, anticipating capital expenditures for 2026 to be between $180 billion and $190 billion, with further increases projected for 2027.
In the first quarter of this year, Alphabet reported revenues of $94.7 billion, reflecting the ongoing AI boom.
