Alphabet launches $80 billion equity raise to fund AI infrastructure and compute expansion

Alphabet is raising $80 billion through three mechanisms: a $40 billion at-the-market share sale program beginning in the third quarter, $30 billion in underwritten common shares and mandatory convertible preferred stock, and a $10 billion investment deal with Berkshire Hathaway.

The capital will support Alphabet's tensor processing units (TPUs — in-house AI processors designed as an alternative to Nvidia's chips) and infrastructure to meet growing demand for AI services.

CFO Anat Ashkenazi stated in April that 2027 capital expenditures will be significantly higher than the up to $190 billion budgeted for 2026, while Bloomberg Intelligence analyst Mandeep Singh said spending could possibly reach $300 billion next year.