Alphabet to Raise $80 Billion Through Stock Offerings, Including $10 Billion Sale to Berkshire Hathaway

Alphabet announced Monday it plans to raise $80 billion from stock sales to fund investments in its AI compute infrastructure. The company said it has reached an agreement to sell $10 billion of stock to Berkshire Hathaway. The remaining $70 billion will come from $30 billion in underwritten offerings and $40 billion from an at-the-market offering program.

The $30 billion in underwritten offerings includes $15 billion in depositary shares representing mandatory convertible preferred stock. The at-the-market offering program is for Class A and Class C shares and is expected to begin in the third quarter. Goldman Sachs, JPMorgan Chase and Morgan Stanley are acting as joint book-running managers for the underwritten offerings.

Goldman Sachs is the placement agent for the private placement. Alphabet stated the capital will fund investments in its world-class AI compute infrastructure to meet its unprecedented customer demand. "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 in the filing.

The announced raise comes as the company spends more this year on AI-related expenses. In April, Alphabet revised its capital expenditure forecast for this year to between $180 billion and $190 billion, up from its previous estimate of $175 billion to $185 billion. Berkshire Hathaway has been building a position in Alphabet since the third quarter of last year.

Prior to Monday's announcement, Berkshire Hathaway's stake in Alphabet was worth about $20 billion. 3 billion bet on Alphabet in November, it marked one of its most significant technology investments in years. Apple is Berkshire Hathaway's largest holding.

Alphabet held a global bond issuance in excess of $30 billion in February, and went to the European market to raise roughly $11 billion in sterling and Swiss francs. That followed a $25 billion bond sale in November. Alphabet's stock has more than doubled in the past year, outperforming all the company's megacap peers, as investors applaud its AI investments and the returns Google is seeing through its Gemini upgrades.

The stock slipped in extended trading on Monday.