Alphabet to Launch $80B Capital Raise to Fund AI Infrastructure Expansion
Alphabet unveiled plans Monday to raise $80 billion to fund a major expansion of its artificial intelligence infrastructure, including a $10 billion private placement investment from Berkshire Hathaway.
The financing package consists of $30 billion in underwritten public offerings, a $40 billion at-the-market stock sale program, and Berkshire’s $10 billion investment.
Under the private placement agreement, Berkshire Hathaway will purchase $5 billion of Alphabet Class A common stock at $351.81 per share and $5 billion of Class C capital stock at $348.20 per share. The investment deepens Berkshire’s longstanding relationship with the Google parent and represents one of the conglomerate’s largest direct commitments to a technology company.
The underwritten offering includes $15 billion of common stock split evenly between Alphabet’s Class A and Class C shares, along with $15 billion of two series of depositary shares.
“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. By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”
The fundraising effort follows Alphabet’s first-quarter earnings call, during which management projected 2026 capital expenditures of $180 billion to $190 billion and indicated spending would increase further in 2027 as AI infrastructure buildouts accelerate.
At the end of the first quarter, Berkshire owned nearly 58 million Alphabet shares valued at approximately $17 billion, making the company one of Berkshire’s largest holdings outside of Apple.
Alphabet said the additional capital will support growing enterprise and consumer demand for AI products by expanding computing capacity, data centers and other foundational infrastructure required to power next-generation AI applications.
Goldman Sachs, J.P. Morgan and Morgan Stanley are serving as joint book-running managers for the underwritten offerings.