Alphabet announced an $80 billion equity raise—including a $30 billion underwritten offering and a $40 billion ATM program slated for Q3—to finance AI infrastructure spending expected to push capital expenditures to $180–190 billion next year. Berkshire Hathaway has committed $10 billion via private placement to support the plan.
Alphabet plans a $30 billion underwritten public offering split among depositary shares tied to mandatory convertible preferred stock, Class A common stock and Class C capital stock, alongside a $40 billion at-the-market program expected to launch in the third quarter of 2026.
Warren Buffett’s Berkshire Hathaway will invest $10 billion through a private placement, comprising equal $5 billion allocations to Class A and Class C shares, building on its initial position established in the third quarter of 2025.
Demand for Alphabet’s AI solutions is outstripping available compute capacity, with Google Cloud revenue up 63% year-over-year in Q1, a backlog exceeding $460 billion, over 8.5 million monthly model users and a sixfold increase in first-party API token processing.
Alphabet projects $180–190 billion in capital spending for 2026, generated $174 billion in operating cash flow over the past 12 months against more than $100 billion in debt, and plans to use roughly $30 billion of ATM proceeds to cover employee tax obligations while maintaining a healthy balance sheet.
