Alphabet seeks $80 billion to fund AI buildout

Alphabet said Monday it plans to raise up to $80 billion in equity to help fund its AI ambitions, which includes a $10 billion investment from Berkshire Hathaway via a private deal.

Why it matters: One of the world's biggest companies, which has had historically high cash flow, is seeking more cash to stay in the AI race.

Driving the news: Alphabet said the proceeds will support "capital expenditures to scale AI infrastructure and global compute" amid "unprecedented customer demand." The financing 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.
• $10 billion from Berkshire Hathaway via a private deal, adding to a stake the company has been building since Q3 2025.

Zoom out: This comes after Alphabet has already sought out additional funds by issuing corporate debt, becoming the first company in modern history to issue a 100-year bond.

• Alphabet and the four other major hyperscalers are set to spend over $750 billion this year, which could expand to $4 trillion by 2030 according to Morgan Stanley.

The bottom line: The Big Tech companies have to invest in AI for fear that it will replace them.

• The bet is an expensive one, but as Alphabet CEO Sundar Pichai said himself: "The risk of under-investing is dramatically greater than the risk of over-investing."