Google’s parent company, Alphabet, announced plans to raise $80 billion through a stock offering. The funds will be used to scale artificial intelligence infrastructure.
The deal includes a public offering of securities worth $30 billion and a phased stock sale program totaling $40 billion, set to launch in the third quarter of 2026.
The public offering is divided into mandatory convertible preferred shares ($15 billion) and Class A and C common shares ($15 billion).
In a separate private placement, Warren Buffett’s holding company will purchase Alphabet securities totaling $10 billion (Class A shares for $5 billion and Class C for $5 billion).
Alphabet emphasized that the investment will increase Berkshire’s stake, which the organization has been growing since the third quarter of 2025.
Representatives of Google’s parent company explained that the net proceeds from the offering will cover expenses for expanding global computing capabilities. The need for additional capital is driven by high demand for AI solutions, which already exceeds supply.
About $30 billion from the phased placement program will be reserved by Alphabet for tax obligations in the 2026 calendar year. These are related to the vesting of employee stock rewards. The remaining funds will be used for general corporate purposes.
Alphabet representatives described this move as part of a “balanced approach” to financing. Earlier, management forecasted that capital expenditures in 2026 would range from $180 billion to $190 billion, with potential growth in 2027.
In the first quarter of this year, Alphabet’s revenue amounted to $94.7 billion amid the AI boom.