Alphabet prices $84.75 billion equity raise for AI infrastructure expansion

Alphabet Inc. (NASDAQ: GOOG, GOOGL) announced the pricing of its equity offerings totaling $84.75 billion, an increase from the previously announced $80 billion raise. The company priced 25,459,689 shares of Class A Common Stock at $355.1982 per share and 25,459,689 shares of Class C Capital Stock at $351.8018 per share.

The offerings include 167,500,000 Series A depositary shares and 167,500,000 Series B depositary shares, each representing a 1/20th interest in newly issued 6.25% Mandatory Convertible Preferred Stock, priced at $50 per share. The Class A and Class C stock offering was increased to $18 billion from $15 billion, while the depositary share offerings were increased to $16.75 billion from $15 billion.

Alphabet granted underwriters 30-day over-allotment options for up to 3,818,953 additional shares each of Class A and Class C stock. The underwriters received over-allotment options for up to 50,000,000 additional depositary shares within a 13-day period.

The Class A and Class C stock offering is expected to close June 4, 2026, with depositary share offerings closing June 5, 2026. The company's previously announced $40 billion at-the-market offering program for stock sales and a concurrent $10 billion private placement complete the total equity raise.

Net proceeds from the stock offerings will be approximately $17.8 billion, while depositary share offerings will generate approximately $16.6 billion, after deducting underwriting discounts and expenses. Alphabet stated it intends to use proceeds for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute. The at-the-market program proceeds will primarily facilitate administrative changes in how the company meets tax obligations for employee equity grants.

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