Investing.com — Alphabet Inc. unveiled a sweeping plan to raise $80 billion in equity capital, a massive move aimed at bankrolling the skyrocketing costs of its artificial intelligence infrastructure. In a striking endorsement of the tech giant’s strategy, Warren Buffett’s Berkshire Hathaway Inc. has agreed to inject $10 billion through a private placement.
The sprawling capital raise underscores the sheer magnitude of investment required to compete in the generative AI era. Alphabet noted that demand for its AI solutions from both corporate enterprises and consumers is currently outstripping its available compute supply.
To bridge that gap, the parent company of Google plans to deploy a multi-pronged financing strategy. The offerings consist of a $30 billion underwritten public offering—split between depositary shares representing mandatory convertible preferred stock, Class A common stock, and Class C capital stock—and a $40 billion at-the-market (ATM) offering expected to launch in the third quarter of 2026.
Berkshire Hathaway’s investment consists of $5 billion in Class A shares priced at $351.81 and $5 billion in Class C shares at $348.20. The Omaha-based conglomerate began building its position in Alphabet during the third quarter of 2025.
Alphabet stated that demand for its AI solutions from corporate enterprises and consumers exceeds its current compute supply. The company projects capital spending between $180 billion and $190 billion for 2026, with expectations for a significant increase in 2027.
Google Cloud revenue increased 63% year-over-year in the first quarter. The division’s backlog nearly doubled quarter-over-quarter to more than $460 billion. Developers using Google’s models now exceed 8.5 million monthly, and first-party API token processing increased sixfold over the past year.
Alphabet generated $174 billion in operating cash flow over the trailing 12 months and carries a debt load exceeding $100 billion. The company said the equity offering is designed to fund expansion while maintaining a healthy balance sheet.
The $40 billion at-the-market program will primarily address employee tax obligations tied to vesting equity awards. Alphabet plans to transition to a sell-to-cover model, using corporate cash to settle employee taxes and issuing equivalent stock through the at-the-market program to replenish funds. The company expects approximately $30 billion of the at-the-market proceeds will be used for tax obligations in 2026.
Goldman Sachs & Co., J.P. Morgan Securities, and Morgan Stanley are serving as joint book-running managers for the underwritten offerings.
