This article first appeared on GuruFocus.
Alphabet (GOOGL, Financials) is raising even more money to fund its AI ambitions. The Google parent increased its planned equity offering to $84.75 billion, up from the $80 billion plan announced earlier in the week. The larger raise suggests investors are still willing to back Big Tech’s expensive AI buildout.
Alphabet plans to use the money to support data centers, cloud capacity and AI computing power. The company has already raised its annual capital spending forecast to $180 billion to $190 billion.
The deal also includes a $10 billion private investment from Berkshire Hathaway, which gives Alphabet a high-profile vote of confidence as it spends heavily on AI.
For investors, the story is simple: AI is getting more expensive, and even cash-rich tech giants are looking for outside capital to keep up.
The opportunity is large, but so is the pressure. Alphabet now has to prove that this spending can turn into stronger growth across Google Cloud, AI tools and search.
The next test is how quickly the company can convert this massive investment into real returns.
