Alphabet Upsizes Equity Offering to $84.75 B, Secures $10 B from Berkshire
Alphabet priced an upsized $84.75 billion equity offering, including a $10 billion private placement from Berkshire Hathaway, to fund AI infrastructure and global compute capacity expansion. The company expects to spend $180–190 billion in capital expenditure by 2026—six times the $31 billion spent in 2022—and aims to net about $34.4 billion.
1. Equity Raise Details
Alphabet increased its planned equity capital raise to $84.75 billion, upsizing its Class A and Class C shares to $18 billion and its depositary shares to $16.75 billion. The upsized offering includes a $10 billion private placement by Berkshire Hathaway, with closings set for June 4 and June 5, 2026.
2. Proceeds Allocation
The company expects net proceeds of roughly $17.8 billion from Class A and C shares and $16.6 billion from depositary shares. Funds will support general corporate needs, with a focus on scaling AI infrastructure and global compute capacity to meet surging enterprise and developer demand.
3. Capex Growth Trend
Alphabet’s capital expenditure has soared from $31 billion in 2022 to an expected $180–190 billion in 2026, reflecting a sixfold increase. The company signals continued capex growth into 2027 to sustain its AI compute expansion and maintain competitive edge.
