Alphabet (NASDAQ: GOOGL) is heading to the equity market for $80 billion as it races to build enough computing power to satisfy demand for its artificial intelligence products.
The Google parent said the proceeds will fund investments in AI compute infrastructure, citing customer demand that is outstripping its available supply.
Key to the funding round is a $10 billion private placement to Warren Buffett’s Berkshire Hathaway, split evenly between Class A shares priced at $351.81 a piece and Class C shares priced at $348.20 each. Berkshire has been quietly accumulating Alphabet stock since the third quarter of 2025, and this deal builds on that position.
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The remainder is structured in three parts. Alphabet is running $30 billion in concurrent underwritten public offerings, half in Class A and Class C stock and half in mandatory convertible preferred shares sold as depositary units. Those preferred shares are slated to convert into common stock around May 2029 and would list on Nasdaq under the tickers GOOGM and GOOGN.
The largest single component is a $40 billion at-the-market program, expected to begin in the third quarter. Rather than financing servers, Alphabet says roughly $30 billion of those proceeds will cover an administrative shift in how it handles taxes on vesting employee equity, effectively settling worker tax bills with corporate cash and replenishing it by issuing stock.
Alphabet has guided to capital expenditures of $180 billion to $190 billion this year, with 2027 set to climb meaningfully higher. The company generated $174 billion in operating cash flow over the trailing 12 months and has raised more than $85 billion of debt in the past year, lifting total borrowings past $100 billion.
Alphabet Class A shares last traded at $376.37 on the Nasdaq, and are currently down 1.9% in after-hours trading.
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