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Alphabet's $80 Billion Equity Raise Signals New Intensity in AI Infrastructure Arms Race

WebProNews·Lucas Greene·about 20 hours ago
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Alphabet Inc. stunned markets Monday with plans to raise $80 billion in fresh equity. The Google parent hadn’t sold new shares since 2005. Now it turns to public offerings, an at-the-market program and a major vote of confidence from Berkshire Hathaway to bankroll explosive artificial intelligence costs. The move comes as capital expenditures surge. Alphabet lifted its 2026 forecast to between $180 billion and $190 billion in April. Executives expect spending to jump even higher in 2027. Demand for compute capacity outstrips supply. Power. Land. Chips. Constraints pile up faster than solutions. Proceeds will split along clear lines. Some $30 billion arrives through concurrent underwritten offerings of Class A and Class C shares plus mandatory convertible preferred stock. Another $40 billion flows via an at-the-market program starting in the third quarter. That portion targets employee tax obligations as equity awards vest. Berkshire Hathaway commits $10 billion in a private placement.…

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