Alphabet Raises $80 Billion for AI; Shares Slip

Alphabet announced on June 1 that it will raise $80 billion in equity to fund artificial intelligence infrastructure, reversing years of stock buybacks. Shares opened about 3.5% lower on the day of the announcement.

The package includes a $30 billion concurrent public offering, a $40 billion at‑the‑market program expected to begin in the third quarter, and a $10 billion private placement anchored by Berkshire Hathaway.

Berkshire Hathaway agreed to buy $5 billion of Class A shares at $351.81 per share and $5 billion of Class C shares at $348.20 per share. The anchor commitment provided support for the offering.

In a filing, Alphabet described the equity offerings as “as part of its plan to fund investments in its AI compute infrastructure to meet customer demand.” Proceeds are intended to fund data centers, custom chips and other capacity to support Search, Cloud and Gemini.

Alphabet now expects capital expenditures of $180 billion to $190 billion in 2026, roughly double its projection for 2025, and indicated another increase is expected in 2027.

The fundraising reverses a buyback program that totaled more than $346 billion since 2016 and reduced shares outstanding by about 13% from a 2019 peak. The prior repurchases lowered share count and increased earnings per share.

Market participants are weighing near‑term dilution from the new shares against Alphabet’s plan to expand AI capacity. Some investors and analysts have flagged risks that large AI capital spending could strain hyperscalers’ cash flow; BlackRock has warned of such risks to broader financial markets.

Markets will monitor how quickly Alphabet converts the additional capital into AI compute capacity and whether those investments translate into higher revenue. The timing and pace of share issuance will affect when changes show up in shares outstanding and earnings per share.