Alphabet announced plans on June 1 to raise roughly $80 billion through multiple equity offerings to support the expansion of its AI infrastructure, including a $10 billion private share purchase by Berkshire Hathaway [1, 2, 3, 4, 5, 6, 7, 8]. The plan involves a $40 billion at-the-market share sale program starting in the third quarter, $30 billion in underwritten offerings—such as mandatory convertible preferred stock—and the $10 billion private deal with Berkshire Hathaway [1, 2, 3, 4, 5, 6, 7, 8].
The company increased the size of the equity raise to approximately $84.75 billion on June 2, adding $4.75 billion more than initially announced [9]. Berkshire Hathaway committed $10 billion through private placement, split evenly between about $5 billion in Class A shares and $5 billion in Class C shares [2, 10, 6, 7]. This investment raised Berkshire’s Alphabet holdings from around $16.6 billion to roughly $32 billion, making Alphabet one of its top five equity holdings [10, 6, 7]. Berkshire Hathaway CEO Greg Abel’s acquisition strategy, which includes Alphabet and the homebuilder Taylor Morrison, marks a shift from Warren Buffett’s traditional style [10].
Alphabet’s CFO, Anat Ashkenazi, forecasted that capital expenditures for 2027 will far exceed the $180-190 billion budgeted for 2026 [1, 2, 3, 4, 5, 6, 8]. Bloomberg Intelligence analyst Mandeep Singh expects 2027 AI infrastructure spending could reach $300 billion, surpassing operating cash flow [1, 2]. The fundraising will support development of Google’s proprietary AI chips (TPUs) as alternatives to Nvidia processors and meet rapidly growing demand for AI compute power from enterprises and consumers [1, 2, 3, 7]. Alphabet noted that demand for its AI solutions is exceeding supply levels currently available [4].
Following the fundraising announcement, Alphabet’s shares fell about 1-2% in after-hours trading [1, 6, 7, 8]. The company’s market capitalization exceeds $4.5 trillion, making it the second-largest globally after Nvidia [6]. Analyst Troy Hooper of Mergermarket said Alphabet is using equity to raise permanent capital instead of adding to an already stretched balance sheet amid massive spending [8]. Steven Check of Check Capital Management said Berkshire is the kind of shareholder other companies welcome [7].
The large equity offering is unusually big for a tech company and ranks among the largest equity deals in history [1, 2, 3, 9]. Observers note the equity raise could divert investment capital from other AI-related companies such as SpaceX, Anthropic, and OpenAI, all preparing public offerings later this year [1, 2].
