Alphabet Inc is raising US$80 billion (A$111 billion) to fund an aggressive expansion of its artificial intelligence (AI) infrastructure with Berkshire Hathaway contributing $10 billion in a private placement.
Alphabet said the capital would support growing demand for AI computing capacity across its products and services, including search, cloud computing and custom AI chips.
The technology giant will sell $5 billion of Class A common stock at $351.81 per share and $5 billion in Class C capital stock for $348.20 per share to Berkshire Hathaway, which adds to the investment company’s growing stake in Google’s parent company.
The broader capital raising includes:
- $30 billion in concurrent public offerings, split between Class A and Class C shares and depositary shares linked to mandatory convertible preferred stock, and
- a $40 billion at-the-market offering program beginning in the third quarter of 2026, allowing it to sell shares gradually depending on market conditions.
“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 in a news release.
“By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”
The company has been rapidly increasing investment in AI infrastructure, raising its 2026 capital expenditure forecast in April by $5 billion to between $180 billion and $190 billion.
Alphabet has funded its AI expansion from a number of sources including cash flow and more than $85 billion of debt.
“All companies are thrilled when Berkshire takes positions, because it is the kind of shareholder that companies like to have," Check Capital Management president and chief investment officer Steven Check was quoted saying in a Reuters article.
An estimated $3 trillion of investment is estimated to be planned in AI over the next three years.
Alphabet Inc Class C (NASDAQ: GOOG) shares closed down $14.19 (3.81%) at $358.39 on Tuesday (Wednesday AEST), capitalising the company at $4.36 trillion.
