Alphabet Raises Record $85 Billion in Two-Part Stock Offering, Plans $180–190 Billion in AI Capex

Alphabet raised $45 billion in its first tranche of an equity offering initially sized at $40 billion. The offering was oversubscribed, CEO Sundar Pichai said in a post on X on Monday. The sale included two different classes of shares plus smaller depositary shares priced to be accessible to a broader range of investors.

Berkshire Hathaway purchased $10 billion worth of the shares. Alphabet plans to sell another $40 billion in stock in its next quarter, bringing the total to $85 billion. That figure would exceed the previous record for equity offerings set by Petroleo Brasileiro SA, which raised $70 billion in 2010.

Alphabet reported $110 billion in revenue in the first quarter, up 22 percent from the same period a year earlier. Pichai stated that the proceeds form part of the company’s multi-year investment strategy to meet the AI opportunity ahead and support the demand from enterprises and consumers.

At Google I/O last month, Pichai said the company expects to spend between $180 billion and $190 billion on capital expenditures before the end of the year, largely on AI infrastructure and data centers.

The timing of the sale coincides with preparations by Anthropic to go public. The SpaceX IPO is expected to set records for cash raised and valuation, and Anthropic’s offering is projected to do the same, possibly surpassing SpaceX. OpenAI is also waiting to go public.

An unprecedented nearly $8 trillion in AI spending has been committed over the next five years. That capital must come from company revenues, loans, and stock sales.