SAN FRANCISCO: Google parent Alphabet announced plans on Monday to raise up to $80 billion through a series of stock offerings to support a major expansion of its artificial intelligence (AI) infrastructure.
The company said the fundraising package would include a $30 billion public stock offering, a $10 billion private share sale to Warren Buffett’s Berkshire Hathaway and a further $40 billion share sale programme scheduled to begin in the third quarter.
The move comes as Alphabet significantly increases spending on AI-related projects. The company expects capital expenditures to reach between $180 billion and $190 billion in 2026, with investment projected to rise further in 2027.
The technology giant is among several major firms racing to expand AI capabilities amid surging demand for advanced computing services. Amazon, Microsoft, Alphabet and Meta are collectively expected to invest around $700 billion this year in AI data centres, semiconductors and computing infrastructure.
Google Chief Executive Officer Sundar Pichai recently told investors that the company is facing short-term capacity constraints, saying it cannot build the required infrastructure quickly enough to meet growing demand.
To address the challenge, Alphabet plans to direct most of the newly raised funds towards expanding its AI operations. Around $30 billion from the share sale programme will also be used to meet tax obligations linked to employee share grants.
The company reported strong financial results in the first quarter, posting a profit of $62.6 billion on revenue of $110 billion, exceeding analyst expectations. Alphabet shares have gained 18 per cent over the past six months.
The AI boom is also fuelling a surge in public listings, with several major technology companies expected to pursue stock market debuts later this year.
