Alphabet announces 80 billion equity raise for AI compute including 10 billion private placement to Berkshire Hathaway
Alphabet $GOOGL announced an $80 billion equity raise to fund AI compute, including a $10 billion private placement to Berkshire Hathaway $BRK.B, CNBC reports. The package combines $30 billion in underwritten offerings with a $40 billion at-the-market program starting Q3.
Alphabet $GOOGL announced an $80 billion equity raise on Monday to fund its AI compute buildout, with Warren Buffett's Berkshire Hathaway $BRK.B agreeing to take a $10 billion private placement at a discount to Alphabet's current share price, CNBC reports. The $80 billion package splits into $30 billion in underwritten public offerings, including $15 billion in mandatory convertible preferred and $15 billion in Class A and Class C common stock, and a $40 billion at-the-market program starting in the third quarter of 2026. Alphabet says proceeds will go to general corporate purposes including capital expenditures to scale AI infrastructure, with $30 billion earmarked to cover taxes on vesting employee equity that the company has historically paid out of cash on hand. Capital expenditures for 2026 are guided between $180 billion and $190 billion. Despite Alphabet's status as one of the largest cash generators in the public markets, the structure reflects how AI compute spending now exceeds what even the most cash-rich tech companies want to fund from operating cash and existing debt capacity. Shares fell about 2 percent in after-hours trading on the dilution.