Google parent Alphabet to raise $134b to fuel AI expansion

Alphabet, the parent company of Google, revealed Monday it will raise up to $80 billion in stock to accelerate its artificial intelligence expansion. Warren Buffett’s Berkshire Hathaway agreed to invest $10 billion as part of the funding, which will be raised through a $30 billion public stock offering, a $10 billion private sale, and a $40 billion share sale program launching in the third quarter. The funds will primarily support AI infrastructure growth, with $30 billion allocated to cover tax obligations from employee share grants. Alphabet’s capital expenditures are projected to reach $180–$190 billion in 2026, rising further in 2027, reflecting a broader tech industry spending race. Amazon, Microsoft, Alphabet, and Meta are collectively investing around $700 billion in AI data centers, chips, and computing infrastructure this year. Google CEO Sundar Pichai previously stated the company faces near-term ‘compute constraints,’ unable to build infrastructure fast enough to meet AI demand. Microsoft has issued similar warnings about capacity shortfalls. Alphabet’s first-quarter profit hit $62.6 billion on $110 billion in revenue, surpassing expectations and year-ago figures. Shares have climbed 18% over the past six months. The AI investment surge is also driving major IPOs, including SpaceX’s upcoming roadshow targeting a $1.75 trillion valuation and OpenAI and Anthropic’s planned public listings. Goldman Sachs, JP Morgan, and Morgan Stanley are managing Alphabet’s stock offering. Anthropic, the developer of the Claude chatbot, filed for its IPO on Monday.