Alphabet plans $80 billion equity raise to fund AI infrastructure, with Berkshire Hathaway committing $10 billion

Alphabet unveiled a $80 billion equity capital raise consisting of a $30 billion underwritten public offering and a $40 billion at-the-market (ATM) offering expected to launch in the third quarter of 2026. Warren Buffett's Berkshire Hathaway agreed to invest $10 billion through a private placement, with $5 billion in Class A shares priced at $351.81 and $5 billion in Class C shares at $348.20.

Alphabet projects capital spending between $180 billion and $190 billion for 2026, with expectations for a significant increase in 2027. The company stated that demand for its AI solutions from corporate enterprises and consumers currently exceeds its available compute supply.

Google Cloud revenue increased 63% year-over-year in the first quarter, and the division's backlog nearly doubled quarter-over-quarter to more than $460 billion. Developers using Google's models exceed 8.5 million monthly, and first-party API token processing increased sixfold over the past year.

Alphabet generated $174 billion in operating cash flow over the trailing 12 months and carries a debt load exceeding $100 billion. Goldman Sachs & Co., J.P. Morgan Securities, and Morgan Stanley are serving as joint book-running managers for the underwritten offerings.