Alphabet to Raise Up to $80 Billion in New Equity, Including $10B Discounted Sale to Berkshire Hathaway, to Fund AI Infrastructure

Alphabet announced plans to raise as much as $80 billion in new equity to finance capital expenditures already under way for expansion of AI infrastructure. The offering includes a $40 billion at-the-market equity program that allows the company to sell shares gradually into the open market beginning in the third quarter.

It also includes a $10 billion private placement sold at a discount to a single institutional investor, Berkshire Hathaway, and $30 billion in underwritten offerings of shares and mandatory convertible preferred stock.

Alphabet intends to use the proceeds from the various offerings for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute. The company said it will use the bulk of the at-the-market offering to pay for tax obligations related to vesting of employee equity awards.

“AI is driving an expansionary moment for Alphabet,” the company said in the statement.

No timetable was provided for completing the sales. The mandatory convertible stock and the underwritten common equity offerings are expected to price Tuesday after the market closes in New York. 6 billion as of the end of March, according to regulatory filings.

20, representing an almost 8 percent discount. Berkshire Hathaway was led until last year by Warren Buffett for 60 years. Greg Abel took over the reins of the firm after Warren Buffett retired last year and has started to invest its record $397 billion cash pile.

8 billion. This is the second notable investment by Berkshire in just two days. The fundraising is one of the largest equity fundraisings ever globally.

Alphabet is the Google parent company.