Alphabet Plans $80B Equity Raise with $10B Berkshire Private Placement
GOOG•Alphabet announced an $80 billion equity capital raise comprising $30 billion in underwritten offerings and a $40 billion at-the-market program. Berkshire Hathaway will invest $10 billion in a private placement split equally between Class A and Class C shares to fund AI compute scaling and global infrastructure expansion.
1. Equity Capital Raise Overview
Alphabet unveiled a plan to raise $80 billion in equity capital to support the soaring costs of its artificial intelligence infrastructure. The initiative combines a $30 billion underwritten public offering and a $40 billion at-the-market program, underscoring the company’s need to expand compute capacity in response to strong demand.
2. Underwritten Offerings
The $30 billion underwritten component consists of $15 billion in depositary shares tied to mandatory convertible preferred stock and $15 billion in Class A and Class C common stock. Joint book-running managers on this portion include Goldman Sachs, JPMorgan Chase and Morgan Stanley.
3. Private Placement by Berkshire Hathaway
Berkshire Hathaway agreed to invest $10 billion through a private placement, acquiring $5 billion of Class A shares and $5 billion of Class C shares. The placement pricing did not disclose discounts, reflecting confidence in Alphabet’s growth prospects.
4. Use of Proceeds and Timeline
Proceeds will fund general corporate purposes, with a focus on scaling AI compute infrastructure and expanding global data center capacity. The $40 billion at-the-market program is slated to commence in the third quarter of 2026 to distribute capital over time.
