Alphabet will sell shares worth 80 billion to invest in AI

Alphabet announced plans to raise up to 80 billion dollars in equity capital to finance its large investments in infrastructure artificial intelligencea significant turnaround for a company that has been among the largest buyers of its own stock on Wall Street. Alphabet’s fundraising includes selling shares for 10 billion dollars a Berkshire HathawayWarren Buffett’s financial holding company, which began acquiring a stake in Google’s parent company starting in the third quarter of 2025.

The private placement with Berkshire will bring the investment firm’s holdings in Alphabet to approximately 32 billion dollarsequal to about a tenth of its stock portfolio. This is one of the most significant bets made by the CEO Greg Abel since he replaced Warren Buffett at the helm of the company earlier this year.

A turning point for the big tech groups

Furthermore, Alphabet’s stock issue is one of the largest in which Berkshire has ever participated, its first initial public offering in over two decades and one of the largest capital raisings ever and marks a turning point for the big tech groups, which have undertaken an unprecedented investment campaign to build the infrastructure underpinning theartificial intelligence.

Pressure on accounts and new financing

So far, large US technology groups have financed their large spending on AI mainly with the large cash flows generated by their core businesses and with debt. But with big tech companies planning to spend 725 billion dollars in AI this year, these expenses have begun to strain the finances of America’s largest companies.

Investment statements and plans

“AI is driving a moment of expansion for Alphabet,” the company said in a statement, adding that the fundraising will help “support significant growth opportunities ahead.” Yesterday Alphabet reiterated its intention to invest up to 190 billion dollars in capital spending this year, a figure that is expected to increase “significantly” in 2027.

Debt and cloud growth

Although last year’s operating cash flow was 174 billion dollarsthe company also took on new debt for 85 billion dollars to finance their expenses. Alphabet has total debt greater than 100 billion dollars. Investments in artificial intelligence have led to an acceleration in the growth of Google Cloudwhich in the first quarter recorded an increase in turnover of 63% on an annual basis, reaching i 20 billion dollars.

Market strategy and reaction

Sources close to the matter reveal to the Financial Times that Alphabet has decided to increase its share capital because executives foresee a prolonged period of large investments in artificial intelligence and wish to diversify its sources of financing, while preserving balance sheet flexibility. Alphabet shares fell by more than 2% in after-hours trading.