Alphabet will raise $80 billion in equity capital through a $30 billion public preferred and common share offering plus a $40 billion at-the-market program to fund AI infrastructure expansion. Berkshire Hathaway has committed $10 billion—split equally between Class A shares at $351.81 and Class C shares at $348.20.
Alphabet has launched an $80 billion equity financing initiative comprising a $30 billion underwritten public offering of depositary shares tied to mandatory convertible preferred stock and common shares, alongside a $40 billion at-the-market share issuance scheduled for the third quarter of 2026. This multi-part structure provides flexibility to raise capital gradually while offering investors a mix of preferred and common equity instruments.
As part of the private placement, Berkshire Hathaway will invest $10 billion—acquiring $5 billion of Class A shares at $351.81 each and $5 billion of Class C shares at $348.20 each. This transaction deepens Berkshire’s position in Alphabet, which had already grown to approximately $16.6 billion in market value from prior stakes opened in late 2025.
Proceeds will accelerate expansion of Alphabet’s AI compute capacity to address demand that currently exceeds existing resources, with capital expenditures projected to reach $180–$190 billion in 2026 and rising further in 2027. The funds will support development of next-generation data centers, AI rack systems, and partnerships for custom chip deployment through 2031.
Alphabet shares slipped 2.5% in premarket trading following the announcement as investors weighed dilution against the company’s long-term AI growth prospects. The scale of the raise underscores massive infrastructure costs for leading AI providers and is likely to shape sentiment across the broader technology sector.
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