Alphabet plans $80 billion equity raise to fund AI infrastructure expansion, Berkshire Hathaway to invest $10 billion

Alphabet Inc. (NASDAQ: GOOG, GOOGL) announced plans to raise $80 billion through equity offerings to fund investments in artificial intelligence infrastructure and compute capacity.

The Mountain View, California-based company said the offerings will consist of $30 billion in concurrent underwritten public offerings and a $40 billion at-the-market offering program for Class A Common Stock and Class C Capital Stock expected to begin in the third quarter of 2026.

The underwritten offerings include $15 billion in depositary shares representing mandatory convertible preferred stock and $15 billion in Class A Common Stock and Class C Capital Stock.

Berkshire Hathaway Inc. has agreed to invest $10 billion in Alphabet through a private placement, comprised of $5 billion in Class A Common Stock at $351.81 per share and $5 billion in Class C Capital Stock at $348.20 per share. This adds to Berkshire Hathaway's position built since the third quarter of 2025.

Alphabet said it intends to use proceeds from the concurrent offerings and private placement for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute. The company expects to use approximately $30 billion of the at-the-market program proceeds to meet 2026 calendar year tax obligations related to employee equity award vesting.

The company reported 2026 capital expenditures are expected to be $180-$190 billion, with 2027 capital expenditures expected to significantly increase. Alphabet generated $174 billion of operating cash flow over the 12 months ended March 31, 2026.

Alphabet reported first quarter 2026 revenue of $110 billion, representing 22% year-over-year growth. Google Cloud revenue grew 63% year-over-year with backlog nearly doubling quarter-over-quarter to more than $460 billion.

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