Alphabet Plans to Raise $80 Billion for AI Infrastructure

Alphabet Plans to Raise $80 Billion for AI Infrastructure

Alphabet plans to raise $80 billion in equity capital to expand its artificial intelligence infrastructure and compute and meet “unprecedented customer demand.”

The Google parent company’s equity offerings include $30 billion in underwritten public offerings, a $40 billion at-the-market (ATM) offering program, and a sale of $10 billion of stock to Berkshire Hathaway in a private placement, Alphabet said in a Monday (June 1) press release.

Alphabet plans to use the net proceeds from the public offerings and the private placement for general corporate purposes, including capital expenditures for AI infrastructure and global compute, and to use those from the ATM program primarily to meet tax obligations associated with the vesting of employee equity awards, according to the release.

“AI is driving an expansionary moment for Alphabet,” the company said in the release. “The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply. By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”

PYMNTS reported in April that during an earnings call, Alphabet said its capital expenditures reached $35.7 billion in the first quarter, with the majority directed toward servers and data centers to support AI workloads.

Alphabet said in its Monday press release that it expects its total 2026 capital expenditures to be between $180 billion and $190 billion, and its 2027 capital expenditures to “significantly increase” compared to 2026.

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During the April earnings call, Alphabet also reported that its revenue increased 22% year over year to reach $109.9 billion in the first quarter, with Search revenue up 19% and Google Cloud up 63%. The company said Google Cloud’s gains reflected demand tied directly to AI workloads and enterprise adoption.

The Financial Times reported in May that American tech giants’ record spending on AI has eaten into their cash flow. With Big Tech investing a record $725 billion in AI projects, the combined free cash flow of Amazon, Google, Microsoft and Meta is projected to fall to $4 billion during the third quarter, according to the report. That figure would be down from the average of $45 billion in each quarter since the pandemic.