Alphabet said it plans to raise $80 billion in equity as it steps up spending on AI infrastructure and compute, pairing a $30 billion public offering, a $40 billion at-the-market program and a $10 billion private placement from Berkshire Hathaway.
The Berkshire deal is split evenly between $5 billion of Class A common stock at $351.81 a share and $5 billion of Class C capital stock at $348.20 a share. Alphabet said the investment adds to Berkshire’s stake built since the third quarter of 2025.
The $30 billion underwritten offering is divided into two pieces: $15 billion of depositary shares representing mandatory convertible preferred stock and $15 billion of Class A common stock and Class C capital stock. Alphabet also expects to grant underwriters 30-day over-allotment options for up to $2.25 billion of additional common stock and capital stock, plus another $2.25 billion of additional depositary shares.
The $40 billion ATM program is expected to begin in the third quarter of 2026. Alphabet said it expects about $30 billion of those proceeds to go toward 2026 tax obligations tied to employee equity awards, with any remaining proceeds used for general corporate purposes.
Alphabet said the capital raise comes alongside a heavier spending plan. In its first-quarter 2026 earnings call, the company said capital expenditures are expected to run $180 billion to $190 billion in 2026, with 2027 capex expected to rise significantly from there.
The company also pointed to its recent operating performance: first-quarter 2026 revenue rose 22% year over year to $110 billion. Google Search and other revenue increased 19%, while Google Cloud revenue jumped 63%.
Google Cloud backlog nearly doubled quarter over quarter to more than $460 billion, with about half expected to be recognized as revenue over the next 24 months.
Alphabet said it generated $174 billion of operating cash flow over the 12 months ended March 31, 2026, and has raised more than $85 billion of debt over the last year, bringing total debt to more than $100 billion.
On its consumer and developer businesses, Alphabet said Google reached 350 million paid subscriptions, and its first-party model APIs are processing 19 billion tokens per minute, up 6 times from a year earlier. The company said more than 8.5 million developers are building with its models each month. Following these announcements, the company's shares moved -0.34%, and are now trading at a price of $370.935. Check out the company's full 8-K submission here.
