Alphabet Sees Significant Increase in Equity Raise to $84.75 Billion to Fund AI Development

Alphabet Increases Planned Equity Raise to $84.75 Billion

Google parent Alphabet has significantly increased its planned equity raise to approximately $84.75 billion, up from the $80 billion it had announced just a couple of days ago. The tech giant is seeking a capital infusion to meet the massive infrastructure demands of artificial intelligence.

According to a 2 June filing, Alphabet plans to raise $18 billion through the sale of Class A and Class C shares and a further $16.75 billion through depositary shares. The company had previously planned to raise $30 billion through concurrent public offerings backed by investment banks, split evenly between the two categories.

In addition to the equity raise, Alphabet has confirmed that it has received $10 billion in investment from Berkshire Hathaway and an additional $40 billion through an at-the-market offering programme in the third quarter of the year.

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The expanded offering from Alphabet is also set to make history. Even at the previously announced $80 billion level, Alphabet was on track to complete the largest equity capital markets transaction ever recorded, according to Bloomberg data. The fundraising would reportedly surpass the roughly $70 billion stock sale completed by Brazilian oil giant Petrobras in 2010, which currently holds the record for the world's largest equity offering.

Demand for Alphabet's AI solutions from both enterprises and consumers is now "meaningfully exceeding" available supply. The company currently operates more than 30 data centres and over 40 cloud regions worldwide, connected through 10 million kilometres of terrestrial and subsea fibre networks.

The company's AI processing capacity has seen a significant increase over the past two years, from 9.7 trillion tokens per month to 3.2 quadrillion tokens monthly.

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The fundraising comes as Alphabet ramps up spending to meet soaring demand for AI infrastructure. The company raised its 2026 capital expenditure forecast by $5 billion in April and now expects to spend between $180 billion and $190 billion this year, with most of the money going towards data centres, networking equipment, and AI computing infrastructure.

As companies rush to build the infrastructure needed for training and running powerful AI models, the report notes that major technology companies are expected to have a combined capital expenditure of over $700 billion in 2026, up from earlier projections of around $600 billion.

Alphabet CEO Sundar Pichai thanked investors for backing the company's AI strategy in a post on X (formerly Twitter).