Alphabet revealed plans to raise $80 billion in equity offerings as part of an ambitious push to expand its AI infrastructure.
The Google parent said in a statement on June 1 that the funds will support “investments in its world-class AI compute infrastructure to meet its unprecedented customer demand.”
The fundraise will consist of a $30 billion public offering of Class A Common Stock and Class C Capital Stock, alongside a $10 billion private investment from Berkshire Hathaway — building on the conglomerate’s previous $4.3 billion stake in Alphabet it acquired in November.
An additional $40 billion at-the-market offering program for Class A Common Stock and Class C Capital Stock is expected to begin in the third quarter of 2026.
The development comes amid intensifying competition in the AI build-out race, with industry giants Amazon, Microsoft, Alphabet and Meta estimated to be on track to spend more than $700B this year on data centers, chips and computing infrastructure.
Yet investment ambitions are outpacing the physical capacity to host the necessary levels of AI infrastructure.
Google CEO Sundar Pichai previously warned investors the company is “compute constrained in the near term” – meaning it cannot build the necessary infrastructure to meet demand.
Alphabet is ramping up spending to try to close that gap, revising its capital expenditure forecast in April this year to between $180 billion and $190 billion, up from its previous estimate of $175 billion to $185 billion.
During its Q1 2026 earnings call, Alphabet said it expects 2027 capital expenditures to increase significantly from 2026.
“AI is driving an expansionary moment for Alphabet,” the company wrote in its statement. “The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,
“By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”
Goldman Sachs, J.P. Morgan and Morgan Stanley have all been tapped to act as co-managers for the underwritten offerings.
