Alphabet raises $85 billion in record stock sale for AI investment
7 reported
Alphabet, Google’s parent company, raised $85 billion through a stock sale that CEO Sundar Pichai described as part of a multi-year investment strategy to meet the AI opportunity. The company initially planned to sell $40 billion in equity instruments, but the offering was oversubscribed and raised $45 billion instead. Alphabet plans to sell another $40 billion next quarter, bringing the total to $85 billion. Among the buyers was Berkshire Hathaway, which purchased $10 billion worth. The $85 billion total tops the previous record for equity offerings set by Brazilian oil producer Petroleo Brasileiro SA, which raised $70 billion in 2010, according to Bloomberg. Pichai stated that Alphabet expects to spend between $180 billion and $190 billion on capital expenditures, largely on AI infrastructure and data centers, before the year ends. The successful sale is seen as a positive signal for upcoming AI-related IPOs, including those of Anthropic, SpaceX, and OpenAI.
What’s reported
Alphabet raised $85 billion through a stock sale for AI investment.
The initial plan was to sell $40 billion, but the offering was oversubscribed and raised $45 billion.
Berkshire Hathaway bought $10 billion worth of the offering.
The $85 billion total surpasses the previous record of $70 billion set by Petroleo Brasileiro SA in 2010.
Alphabet reported $110 billion in revenue in Q1, up 22% year-over-year.
CEO Sundar Pichai said Alphabet expects to spend $180 billion to $190 billion on capital expenditures, largely on AI infrastructure and data centers, this year.
The sale is seen as a positive sign for AI IPOs from Anthropic, SpaceX, and OpenAI.
Key figures
Sundar Pichai, CEO of Alphabet
Berkshire Hathaway (as a buyer)
Sources: TechCrunch
