Alphabet plans an $80B equity raise for AI infrastructure—with a $10B private placement to Berkshire Hathaway, a $30B public offering and a $40B at-the-market deal. Jim Cramer warned the ATM structure risks dilution and a stock “slog,” while Jim Chanos and Gary Marcus questioned the need given its $126B cash.
Alphabet will raise $80 billion in equity to expand AI infrastructure, using a three-part plan: a $10 billion private placement to Berkshire Hathaway, a $30 billion public offering and a $40 billion at-the-market deal. Proceeds will fund data centers and computing resources to support advanced AI model development.
Berkshire Hathaway agreed to purchase $10 billion of new shares in a private placement, adding to a stake that has grown over 3x since last quarter to nearly $17 billion. This investment makes the conglomerate a prominent backer of Alphabet’s long-term AI and cloud strategy.
Jim Cramer warned the at-the-market component could dilute existing shareholders and turn the stock into a 'real slog,' while short-seller Jim Chanos questioned the necessity of such large funding given Alphabet’s $126 billion cash reserve. AI researcher Gary Marcus labeled the broader fund-raising approach as a common misstep among AI labs, suggesting potential overextension.
