Alphabet aims to raise a total of $80 billion through a combination of stock offerings to finance further investments in AI infrastructure and computing power. In addition, Berkshire Hathaway is investing $10 billion in the company through a private placement. This brings the total capital raise to $90 billion.
The financing consists of several components. Alphabet aims to raise $30 billion through public stock and preferred stock offerings. In addition, the company will launch a so-called at-the-market (ATM) program in the third quarter, which will allow it to gradually sell up to $40 billion in shares. Berkshire Hathaway is purchasing $10 billion in shares in a separate transaction.
According to Alphabet, the capital increase is necessary to meet the growing demand for AI services and cloud capacity. The company states that demand from both businesses and consumers currently exceeds available capacity. The proceeds will therefore be used to expand AI infrastructure, data centers, and compute capacity.
Berkshire Hathaway is investing $5 billion in Alphabet Class A shares and $5 billion in Class C shares. The investment builds on a stake that Berkshire has been accumulating since the second half of 2025.
Capex continues to rise
Alphabet previously announced that capital expenditures in 2026 are expected to total between $180 billion and $190 billion. The company expects these investments to increase further in 2027. The new share issuance is part of a broader financing strategy in which Alphabet utilizes the capital markets in addition to its own cash flows.
Furthermore, the planned ATM offering of up to $40 billion is not intended solely for AI investments. Alphabet expects to use approximately $30 billion of the proceeds to cover tax liabilities related to employee stock awards. The remaining amount will be used for general corporate purposes, including the further expansion of AI capacity.
Over the past twelve months, Alphabet generated $174 billion in operating cash flow, according to its own figures. In addition, the company raised more than $85 billion in debt during the same period, bringing its total debt to over $100 billion.
Strong growth in AI activities
Alphabet attributes the capital increase to the strong growth of its AI activities. In the first quarter of 2026, the group’s revenue rose by 22 percent to $110 billion. Google Cloud’s revenue grew by 63 percent year-over-year during the same period. The company also reported that more than 8.5 million developers now use its AI models and APIs on a monthly basis.
Alphabet also highlighted the growth of its cloud operations. According to the company, Google Cloud’s order backlog has reached more than $460 billion, about half of which is expected to be recognized as revenue within two years. Additionally, Google now has 350 million paid subscriptions for its various consumer services.
The public offerings are being managed by Goldman Sachs, JPMorgan, and Morgan Stanley. Alphabet expects to complete the various transactions in the coming period, subject to market conditions and customary approvals.