Alphabet Inc. announced Monday it will issue $80 billion in equity to finance the rapid buildout of its artificial intelligence infrastructure. The parent company of Google said the capital will fund new data center construction and secure the computing hardware necessary to develop and operate increasingly complex AI systems.
The funding strategy divides the $80 billion raise across two separate vehicles. The company reached an agreement to sell $10 billion in stock directly to Berkshire Hathaway, a major investor that has recently expanded its positions in technology equities. Alphabet plans to issue the remaining $70 billion through a combination of secondary market offerings later this year.
The scale of the equity raise aligns with capital expenditure guidance the company provided earlier in the year, when executives projected 2026 infrastructure spending could reach as high as $190 billion. Alphabet said it expects capital expenditures to climb significantly higher in 2027 as the race to deploy large-scale AI models continues.
Investors reacted cautiously to the capital raise announcement. Shares in Alphabet fell by more than 1% in after-hours trading. The Wall Street Journal, which reported the development, noted that its parent company, News Corp, maintains an active commercial agreement to supply content across Google’s platforms.