Market AnalysisJun 02, 20262 Min

Google Parent Alphabet To Raise $80 Billion For Massive AI Expansion

Alphabet plans to sell $30 billion worth of securities through a public sale, split evenly between Class A and Class C shares and mandatory convertible preferred stock.

Alphabet, the parent company of Google, plans to raise $80 billion through stock sales to help fund its massive artificial intelligence (AI) expansion. The company is increasing investments in AI infrastructure, including data centres, advanced computer chips, and cloud services.

Legendary investor Warren Buffett's company, Berkshire Hathaway, plans to invest $10 billion as part of the fundraising.

The capital will “fund investments in its world-class AI compute infrastructure to meet its unprecedented customer demand," Alphabet said in its statement.

The company plans to sell $30 billion worth of securities through a public sale, which includes $15 billion in mandatory convertible preferred stock and $15 billion in Class A and Class C shares.

Instead of selling all shares at once, Alphabet will gradually sell $40 billion worth of shares through an "At-the-Market" (ATM) programme over time. This is expected to start in Q3 of 2026. Alphabet says that the net proceeds will be used for general corporate purposes. This includes capital expenditure to scale AI infrastructure and global compute, along with ~$30 billion earmarked to cover taxes linked to employee stock awards.

"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," Alphabet said. The tech giant expects its 2026 capital expenditure to hit $180 billion to $190 billion, and estimates the 2027 capex to be significantly higher.

In the 12 months ended March 31, 2026, Alphabet generated $174 billion in operating cash flow and raised more than $85 billion in debt from investors around the world. Its total debt now exceeds $100 billion.

The planned investments are expected to support Alphabet's business momentum. In the first quarter of 2026, the company generated $110 billion in revenue. That marks a 22% increase year-on-year.

Notably, revenue from Google Search and related services rose 19% year-over-year. Meanwhile, Google Cloud was one of the fastest-growing segments of the company with revenue growing 63% year-on-year. The backlog nearly doubled quarter-on-quarter, surpassing $460 billion.

Further, Google has garnered 350 million paid subscriptions across products and services. According to the company’s statement, the first quarter of 2026 was its strongest ever for consumer AI subscription plans.

At present, more than 8.5 million developers are building applications using its AI models every month. At the same time, Google's AI systems are processing 19 billion tokens per minute. The company said this processing volume has increased six-fold in one year.

"By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead," Alphabet said.

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