Alphabet announced plans for an $80 billion equity capital raise as the company accelerates investments in artificial intelligence infrastructure and compute capacity to meet growing customer demand. The financing package includes public offerings, an at-the-market stock program, and a strategic investment from Berkshire Hathaway.
The company said the capital raise is designed to support what it described as an “expansionary moment” driven by AI adoption across both enterprise and consumer markets. Alphabet noted that demand for its AI products and services is currently exceeding available supply, prompting the need for significantly larger infrastructure investments.
The financing package consists of three components:
- $30 billion in concurrent underwritten public offerings, including $15 billion of mandatory convertible preferred stock and $15 billion of Class A and Class C common stock.
- A $40 billion at-the-market stock offering program expected to begin in the third quarter of 2026.
- A $10 billion private placement investment from Berkshire Hathaway, split evenly between Class A and Class C shares.
Alphabet said proceeds from the offerings will primarily be used to fund capital expenditures for AI infrastructure and global compute expansion. The company also noted that approximately $30 billion of proceeds from the ATM program are expected to support tax obligations related to employee equity award vesting during the 2026 calendar year.
The announcement comes as Alphabet continues to report strong growth across its business. In the first quarter of 2026, revenue increased 22% year over year to $110 billion. Google Cloud revenue rose 63% year over year, while cloud backlog nearly doubled quarter over quarter to more than $460 billion. The company also reported reaching 350 million paid subscriptions and said more than 8.5 million developers are building with its AI models each month.
Alphabet previously disclosed that it expects 2026 capital expenditures to total between $180 billion and $190 billion, with 2027 spending projected to increase significantly beyond that level. The company said it generated more than $174 billion in operating cash flow over the 12 months ended March 31, 2026, and has raised more than $85 billion in debt over the past year, bringing total debt above $100 billion.
Goldman Sachs, J.P. Morgan, and Morgan Stanley are serving as joint book-running managers for the underwritten offerings, while Goldman Sachs is acting as placement agent for the Berkshire Hathaway private placement.
