Alphabet, the parent company of Google, announced Monday that it plans to raise $80 billion through a stock sale to finance a large-scale expansion of its AI infrastructure. The funds will be directed toward “general corporate purposes, including capital expenditures to scale AI infrastructure and global compute,” the company said in a statement.
As part of the plan, Alphabet will sell $10 billion in stock to Berkshire Hathaway, the global holding company formerly led by Warren Buffett. The remaining amount will be raised through broader stock offerings.
Alphabet cited surging demand as the driver behind the move. “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,” the company said. It added that scaling investments would allow it to “expand its foundational infrastructure to support the significant growth opportunity ahead.”
Alphabet also described the stock plan as a way to “fund its investments in a balanced way while retaining a healthy balance sheet.”
The $80 billion raise is part of a broader capital spending push. At Google I/O last month, CEO Sundar Pichai said the company expects to spend between $180 billion and $190 billion on capital expenditures in 2026. Alphabet is not alone in this spending — tech giants collectively are expected to spend as much as $700 billion on AI capital expenditures this year.
The scale of Alphabet’s fundraising and planned spending suggests the company is moving to close the gap between AI demand and its current capacity, though how quickly that infrastructure can be brought online remains to be seen.
Source: TechCrunch