The Google parent said the capital will be used to fund investments in its AI computing infrastructure, aimed at meeting its growing customer demand.
- The plan includes $30B in underwritten offerings and a $40B at-the-market program to raise capital over time.
- Berkshire Hathaway will invest $10B in a private placement split between Class A and Class C shares.
- Proceeds will be used for general corporate purposes, including scaling AI compute and global infrastructure.
Alphabet Inc. (GOOGL) announced a plan to raise $80 billion in equity capital, a massive move aimed at bankrolling the skyrocketing costs of its artificial intelligence infrastructure. In an endorsement of the tech giant’s strategy, Warren Buffett’s Berkshire Hathaway Inc. (BRK.A) agreed to invest $10 billion through a private placement.
GOOGL ended Monday’s session down 1.02% and extended losses in after-hours trading, slipping a further 1.8% at the time of writing.
Alphabet Outlines $80B Fundraising Plan
The Google parent company said the capital raise will support investments in its AI compute infrastructure as demand for its services continues to grow. The company said the plan is aimed at scaling capacity to meet “unprecedented customer demand.”
Alphabet added, “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.”
The company’s plan includes $30 billion in underwritten public offerings. This comprises $15 billion in depositary shares tied to mandatory convertible preferred stock and $15 billion in Class A and Class C common stock.
It also includes a $40 billion at-the-market (ATM) program for Class A and Class C shares, expected to begin in Q3 2026.
Berkshire Hathaway To Add $10B Stake
Separately, Alphabet has agreed to sell $10 billion in stock to Berkshire Hathaway through a private placement. The investment includes $5 billion each in Class A and Class C shares, priced at $351.81 and $348.20 per share, respectively.
The Berkshire investment adds to its existing position built since Q3 2025.
Alphabet said proceeds from the offerings and private placement will be used for general corporate purposes, including capital spending to expand AI infrastructure and global compute capacity.
Goldman Sachs (GS), JPMorgan Chase (JPM), and Morgan Stanley (MS) are serving as joint book-running managers for the underwritten offerings. Goldman Sachs is also acting as the placement agent for the private placement.
GOOGL Stock: What Stocktwits Retail Sentiment Says
Retail sentiment on Stocktwits for GOOGL turned “neutral” from “bearish” a day ago.
A few Stocktwits users even struck a bullish tone. One Stocktwits user said the $80 billion equity raise represents “smart dilution” and added that it is a reason to “buy the dip.”
Another said Berkshire Hathaway’s additional investment is a strong positive that outweighs dilution concerns, noting that Alphabet’s market cap can swing by about $70 billion in a single day.
The GOOGL stock has gained over 124% in the past 12 months.
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