Alphabet, the parent company of Google, announced plans to raise $80 billion through a stock offering aimed at scaling its artificial intelligence infrastructure.
The deal includes a public offering of securities worth $30 billion and a phased stock sale program totaling $40 billion, set to launch in the third quarter of 2026.
The public offering is divided into mandatory convertible preferred shares ($15 billion) and common shares of Class A and C ($15 billion).
In a separate private placement, Warren Buffett's holding company will purchase Alphabet securities totaling $10 billion, with $5 billion in Class A shares and $5 billion in Class C shares.
Alphabet emphasized that this investment will increase Berkshire's stake, which the company has been building since the third quarter of 2025.
Representatives from Alphabet explained that the net proceeds from the offering will be used to expand global computing capabilities. The need for additional capital is driven by high demand for AI solutions, which currently exceeds supply.
Approximately $30 billion from the phased offering will be reserved for tax obligations in the 2026 calendar year, related to the vesting of employee stock awards. The remaining funds will be allocated for general corporate purposes.
Alphabet officials described this move as part of a "balanced approach" to financing. Previously, management projected that capital expenditures in 2026 would range from $180 billion to $190 billion, with further growth anticipated in 2027.
For reference, Alphabet reported revenue of $94.7 billion in the first quarter of this year amid the AI boom.