Why Larry Page and Sergey Brin lost $10 billion each

Alphabet, Google’s parent company, revealed plans to raise $80 billion through stock sales and private investments to accelerate its AI infrastructure. The announcement triggered a 3.8% drop in Alphabet’s shares on June 2, wiping out approximately $10 billion each from the fortunes of co-founders Larry Page and Sergey Brin, whose wealth remains tied to the company’s stock performance. The fundraising package includes $15 billion in common stock, $15 billion in mandatory convertible preferred stock, $10 billion from Berkshire Hathaway, and a $40 billion at-the-market (ATM) stock sale program. The proceeds will support AI development as competition among tech giants intensifies. Alphabet’s projected capital expenditures for 2026 range between $180 billion and $190 billion, nearly doubling its 2025 spending and exceeding analyst expectations. The company already holds $126.8 billion in cash and has raised over $85 billion in debt in the past year. CEO Sundar Pichai highlighted computing capacity as a key challenge amid rising AI demand. The ATM program allows Alphabet to sell shares incrementally without disclosing individual transactions, though total amounts must be reported to regulators. Market reaction to the ambitious funding plan led to a 6% decline in Alphabet’s stock over five days, reflecting investor concerns about the company’s aggressive spending. Despite the short-term wealth loss for Page and Brin, the move signals Alphabet’s long-term commitment to AI dominance.