Alphabet to Raise $80 Billion for AI Expansion, Includes Berkshire Hatha

Alphabet said yesterday (May 1) that it plans to raise about $80 billion through equity offerings as it accelerates spending on artificial intelligence infrastructure, including a major investment from Berkshire Hathaway.
The Google parent company will sell $10 billion in shares to Berkshire Hathaway in a private placement, split between $5 billion in Class A common stock and $5 billion in Class C stock, both priced below Monday’s closing levels. The move marks a high-profile endorsement of Alphabet’s long-term AI and cloud strategy.

Alphabet has been increasing capital expenditure to support growing demand for AI computing, recently raising its annual spending forecast by $5 billion to between $180 billion and $190 billion.

The company also plans to raise an additional $30 billion through concurrent public offerings, including a mix of convertible preferred stock and Class A and Class C shares. It further intends to launch a $40 billion at-the-market share sale program in the third quarter to provide ongoing fundraising flexibility.