MOUNTAIN VIEW, Calif. (Diya TV) — Alphabet Inc. announced a plan to raise up to $80 billion in equity capital to expand its artificial intelligence compute infrastructure. The announcement also includes a $10 billion private placement investment from Berkshire Hathaway Inc.
The $80 billion raise is structured in three parts. The package includes $30 billion in underwritten public offerings, split between mandatory convertible preferred stock and common stock; $40 billion through an at-the-market stock offering program expected to begin in Q3 2026; and $10 billion from Berkshire Hathaway via a private placement.
The private placement is split evenly between share classes. 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 conglomerate began building its position in Alphabet during the third quarter of 2025.
Goldman Sachs, JPMorgan Chase, and Morgan Stanley are acting as joint book-running managers for the underwritten offerings, and Goldman is the placement agent for the private placement.
Alphabet stated the funds will be directed toward AI infrastructure and compute capacity. 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.
Alphabet said 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.”
Although Alphabet generated approximately $174 billion in operating cash flow over the last 12 months, the company said additional capital is needed to support its infrastructure plans while maintaining financial flexibility. The company currently carries more than $100 billion in debt, and said the equity raise is intended to fund growth without placing excessive strain on its balance sheet.
This capital raise comes on top of significant prior debt issuances. Alphabet held a global bond issuance in excess of $30 billion in February 2026, and raised roughly $11 billion in sterling and Swiss francs in European markets, following a $25 billion bond sale in November 2025.
The company projects capital spending of 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 of 2026. The division’s contract backlog nearly doubled quarter-over-quarter to more than $460 billion.
Alphabet, Microsoft, Meta, and Amazon are expected to pour more than $700 billion combined this year into capital expenditures. Wall Street analysts estimate total AI capex across the industry could climb above $1 trillion in 2027.
The announcement was met with investor concern over dilution. Alphabet’s stock closed at $372.58 on Monday, down 1.02%, and slipped another 1.50% to $367 in after-hours trading. Shares opened down a further 3.47% on June 2.
The primary concern among investors stems from the potential dilution of existing shareholder value. The at-the-market program, in particular, suggests a steady supply of new shares entering the secondary market over an extended period. Issuing $80 billion against Alphabet’s $4.5 trillion market cap implies dilution of about 1.8%.
Berkshire tripled its Alphabet stake to roughly 58 million shares in Q1 2026. The $10 billion commitment marks a significant move under new CEO Greg Abel, who succeeded Warren Buffett. Berkshire’s record cash position reached $397.4 billion at quarter-end. Prior to the announcement, Berkshire’s existing stake in Alphabet was worth approximately $20 billion, making it one of its largest holdings.
