Alphabet is looking for greater cash flow to spend on AI advancements.
Google’s parent company has announced plans to sell $80 billion worth of its stock (Nasdaq: GOOG), with net proceeds earmarked for “general corporate purposes, including capital expenditures to scale AI infrastructure and global compute.”
The company produces generative AI chatbot Gemini alongside a series of offerings through Google DeepMind.
Alphabet’s expected $80 billion influx will come from three sources. For one, Berkshire Hathaway has agreed to invest $10 billion into Alphabet. This stake builds on the Omaha-based conglomerate’s $4.3 billion investment in Alphabet last fall.
Outside of Berkshire Hathaway, Alphabet has proposed $30 billion in underwritten public offerings, with $15 billion “in depositary shares representing mandatory convertible preferred stock.” The remaining $15 billion will be in Class A Common Stock and Class C Capital Stock.
Similarly, Alphabet plans to offer $40 billion of Class A Common Stock and Class C Common Stock at-the-market starting in this year’s third quarter.
As of publication, Alphabet’s shares had fallen about 2.6% in premarket trading.
Alphabet is all in on AI
The announcement follows Alphabet’s quarter-one earnings report in which it raised 2026’s expected capital expenditures from between $175 to $185 billion to $180 and $190 billion. In the first quarter alone, the company reached $35.7 billion—jumping 107% year-over-year (YOY).
Alphabet further predicts its 2027 capital expenditures to increase even further.
The attitude at Alphabet is clear: investment is necessary for further AI development.
“AI is driving an expansionary moment for Alphabet. 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 stated in this week’s announcement. “By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”
