Alphabet Plans $80 Billion AI Funding; Shares Fall After Announcement

Alphabet announced plans to raise $80 billion to support artificial intelligence infrastructure buildout, comprising $30 billion in underwritten public offerings and $40 billion through an at-the-market program. Berkshire Hathaway will invest $10 billion in a private placement, buying $5 billion of Alphabet Class A shares and $5 billion of Class C shares.

Alphabet had already lifted its 2026 capital-spending forecast in April to $180 billion to $190 billion, with the company saying the pace could increase further in 2027. The company cited demand for its AI products and services as outpacing available capacity.

Alphabet shares were down about 4% on Tuesday following the disclosure, reflecting investor caution over the scale of the funding plan despite Berkshire's stake signaling confidence in the company's AI push.