Alphabet Planning to Raise $80 Billion for AI Goals, Berkshire to Invest $10B

Alphabet is looking to raise $80 billion in equity offerings, including via an investment deal with Berkshire Hathaway, the Google parent said on Monday, in its aggressive push to fund a costly expansion of its AI infrastructure.

The deal also brings in Warren Buffett’s diversified holding company BRKa.N as a major new investor, adding a high-profile endorsement of Alphabet’s long-term AI and cloud strategy.

Alphabet would sell $10 billion worth of shares to Berkshire in a private placement, comprising $5 billion in Class A common stock at $351.81 per share and $5 billion in Class C capital stock for $348.20 per share, both below Monday’s closing prices. Class A shares closed at $376.37 and Class C at $372.58.

The company said it aims to raise $30 billion through concurrent public offerings backed by investment banks, split evenly between depositary shares tied to mandatory convertible preferred stock and Class A and C shares.

In addition, Alphabet said it expects to launch a $40 billion at-the-market offering program in the third quarter, giving it flexibility to sell Class A and Class C stock gradually over time.

“The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” Alphabet said.

In April, Alphabet raised its annual capital spending forecast by $5 billion to between $180 billion and $190 billion and said it was planning another significant increase in 2027.

The company’s shares were down 2% after the bell.

(Reporting by Varghese in Bengaluru; Editing by Arun Koyyur)