Alphabet Raises $80B to Fund AI Infrastructure, Eyes $300B 2027 Capex
GOOG•Alphabet is preparing an $80 billion equity raise to finance AI infrastructure, comprising a $40 billion at-the-market program starting in Q3, $30 billion in underwritten shares and convertibles, plus a $10 billion investment from Berkshire Hathaway. CFO forecasts 2027 capital expenditures could exceed the $190 billion 2026 budget, potentially hitting $300 billion.
1. Equity Raise Structure
Alphabet’s $80 billion package breaks down into a $40 billion at-the-market share sale beginning in Q3, $30 billion of underwritten common shares and mandatory convertible preferred stock, and a $10 billion private placement with Berkshire Hathaway.
2. AI Infrastructure Expansion
The proceeds will support scaling of Google’s in-house tensor processing units and other AI compute assets, positioning Alphabet to compete more directly with Nvidia’s market-leading processors and meet rising demand for its TPU technology.
3. Capital Expenditure Outlook
CFO Anat Ashkenazi signaled that 2027 capex will significantly surpass the up-to-$190 billion allocated for 2026, with third-party analysts projecting spending could approach $300 billion as AI investments intensify.
