This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL) said it plans to raise $80 billion to support a faster buildout of artificial intelligence infrastructure, with Berkshire Hathaway set to invest $10 billion in a private placement. Alphabet shares edged lower after the disclosure.
Alphabet’s financing plan includes $30 billion in underwritten public offerings and another $40 billion through an at-the-market program. Berkshire would buy $5 billion of Alphabet Class A shares and $5 billion of Class C shares, while Alphabet said demand for its AI products and services is outpacing available capacity.
Alphabet had already lifted its 2026 capital-spending forecast in April to $180 billion to $190 billion, and said the pace could increase further in 2027. The company has been widening its data-center and compute footprint as it tries to keep up with AI-related demand.
Alphabet shares were down about 4% on the Tuesday, reflecting investor caution over the scale of the funding plan even as Berkshire’s stake signaled confidence in the company’s AI push.
