Alphabet said on Tuesday it plans to raise $80 billion in new equity capital for a major expansion of its artificial intelligence infrastructure, a financing push that sent Broadcom shares up more than 6% in premarket trading. Warren Buffett's Berkshire Hathaway also agreed to put $10 billion into Alphabet, adding fresh momentum to a deal structure built to support the company's AI build-out.
The Berkshire money will come through a private placement split evenly between $5 billion of Alphabet Class A shares at $351.81 apiece and $5 billion of Class C shares at $348.20 each. For Buffett, the move deepens a position that Berkshire disclosed last month it had more than tripled to about $16.6 billion, a sign that the conglomerate has been leaning harder into a company at the center of the AI spending race.
The size of the plan matters because Alphabet is not relying on one funding source. It has outlined a $30 billion public offering divided evenly between depositary shares tied to mandatory convertible preferred stock and common shares, and it also plans a $40 billion at-the-market issuance program in the third quarter. Put together, the pieces show one of the biggest equity fundraises yet aimed at artificial intelligence infrastructure.
That spending wave is already rippling through suppliers. Broadcom has a long-term agreement with Google to develop and supply custom AI chips and related components for next-generation AI rack systems through 2031, and its shares jumped after Alphabet's announcement. The chipmaker is currently the sixth-largest U.S. company by market capitalization, and it is scheduled to release quarterly earnings on Wednesday, giving investors another chance to hear how the AI build-out is affecting demand.
Alphabet also said demand for its AI solutions and services from enterprises and consumers is running ahead of available supply, a rare admission that helps explain why it is still trying to raise another $80 billion while already tapping a major private investor. What remains unclear is how the company will divide that money across specific projects, even as the capital plan suggests the scale of its AI ambitions is still outrunning the infrastructure it has in place. For investors watching google stock, the next evidence will come from how quickly Alphabet can turn this financing into capacity.
