Alphabet Plans $80 Billion Equity Raise to Fund AI Infrastructure
Alphabet plans to raise up to $80 billion through stock offerings and a Berkshire Hathaway investment as AI demand drives a sharp increase in infrastructure spending.
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Alphabet plans to raise up to $80 billion through equity offerings, including a $10 billion investment from Berkshire Hathaway, as the Google parent expands spending on artificial intelligence infrastructure and computing capacity.
The company said on Monday that the planned raise includes $30 billion in underwritten public offerings, a $40 billion at-the-market share sale program and a $10 billion private placement with Berkshire Hathaway.
Alphabet said the public offerings will comprise $15 billion of Class A and Class C shares and $15 billion of depositary shares representing mandatory convertible preferred stock. The at-the-market program, covering Class A and Class C shares, is expected to begin in the third quarter of 2026, subject to market conditions.
Berkshire Hathaway will buy $5 billion of Alphabet Class A shares and $5 billion of Class C shares through the private placement. Alphabet said the investment adds to a position Berkshire began building in the third quarter of 2025.
The fundraising marks a shift in how one of the world’s largest technology companies is financing the AI buildout. Alphabet said demand for its AI products and services from businesses and consumers is exceeding available supply.
“AI is driving an expansionary moment for Alphabet,” the company said. “The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply.”
Alphabet said proceeds from the underwritten offerings and Berkshire placement will be used for general corporate purposes, including capital expenditure to scale AI infrastructure and global computing capacity. The company said the at-the-market program will be used mainly to meet tax obligations tied to vesting employee equity awards, with any additional proceeds going toward general corporate purposes.
Alphabet has already signaled a sharp increase in AI-related spending. During its first-quarter earnings call, the company projected capital expenditures of between $180 billion and $190 billion in 2026 and said spending is expected to increase further in 2027.
The company generated $174 billion in operating cash flow over the 12 months ended March 31, 2026. It has also raised more than $85 billion in debt over the past year, bringing its total debt balance above $100 billion.
Alphabet reported first-quarter revenue of $110 billion, up 22% from a year earlier. Google Cloud revenue rose 63% year over year, while the cloud division’s backlog grew to more than $460 billion.
The company also said it now has more than 8.5 million developers building applications with its AI models each month, while its model APIs process 19 billion tokens per minute, six times more than a year ago.
The fundraising plan underscores the growing financial demands of the AI race as technology companies invest heavily in the infrastructure needed to support increasingly advanced AI systems.
