Google CEO Sundar Pichai speaks at the 2026 Google I/O Technology Developer Conference in Mountain View, California on May 19, 2026.
Carl Mondon | AFP | Getty Images
alphabet The company said Monday it plans to sell $80 billion in stock, including a $10 billion investment by Berkshire Hathaway.
Google’s parent company said in a statement that the capital will “fund investments in world-class AI computing infrastructure to meet unprecedented customer demand.”
“The company is experiencing strong demand for AI solutions and services from businesses and consumers, and the level of demand exceeds the supply that the company is able to provide,” Alphabet said in a statement. “By increasing investment, the company is expanding its underlying infrastructure to support significant growth opportunities ahead.”
Google is significantly increasing its spending on artificial intelligence to catch up with other hyperscalers in the tech industry. In April, the company raised its outlook for capital spending for this year to $180 billion to $190 billion, from its previous forecast of $175 billion to $185 billion. When asked at the time what was keeping Google executives up at night, CEO Sundar Pichai said, “Computing power.”
“How can we meet this extraordinary demand at this time, regardless of power, land and supply chain constraints?” he said.
Alphabet, Microsoft, Meta and Amazon are expected to collectively spend more than $700 billion in capital spending this year. Wall Street analysts predict that total capital investment in AI could exceed $1 trillion in 2027.
Bond markets are also important for the development of AI. Alphabet issued more than $30 billion in corporate bonds globally in February, going to European markets and raising about $11 billion in pounds and Swiss francs. It follows a $25 billion bond sale in November.
Alphabet’s stock has more than doubled in the past year, outperforming all of its mega-cap peers, as investors praise the company’s AI investments and the benefits Google is seeing through its Gemini upgrade. Shares fell in extended trading Monday.
In addition to the $10 billion from Berkshire, Alphabet is planning an underwritten offering of $30 billion, including $15 billion in deposited shares representing mandatory convertible preferred stock. The remaining $40 billion will come from an over-the-counter offering program for Class A and Class C shares that is expected to begin in the third quarter.
goldman sachs, JP Morgan Chase and morgan stanley is acting as joint book running manager for the underwriting offering and Goldman is acting as the offering agent for the private placement.
Berkshire has been building its position within Alphabet since the third quarter of last year. Before Monday’s announcement, its stake in the search giant was worth about $20 billion, making it one of its top positions.
When Berkshire unveiled its $4.3 billion bet on Alphabet in November, it was one of the company’s most significant technology investments in years. Apple is the company’s largest holding company.
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