Alphabet Increases Record-Breaking Stock Offering to Feed AI

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Two days after announcing a plan to raise $80 billion in equity capital to expand its artificial intelligence infrastructure, Alphabet raised it to $84.75 billion.

The underwritten public offerings that were previously announced at a total of $30 billion have been upsized to $34.75 billion, the Google parent company said in a press release dated Tuesday (June 2) and issued Wednesday (June 3).

The company’s other previously announced equity offerings remain unchanged. They include a $40 billion at-the-market (ATM) offering program and a sale of $10 billion in stock to Berkshire Hathaway in a private placement, according to the release.

Bloomberg reported Wednesday that according to its data, Alphabet’s equity offering is set to be the largest of all time. Even the previously announced $80 billion figure would set that record. The current highest figure is the $70 billion sale of common and preferred stock in 2010 by Brazilian oil producer Petroleo Brasileiro, according to the report.

Reuters reported Wednesday that Alphabet’s upsizing of the offering reflects investor interest in tech companies that are expanding their AI infrastructure and computing power. The report added that Alphabet said in April that it was increasing its annual capital spending forecast by $5 billion to between $180 billion and $190 billion.

When Alphabet announced the equity offerings Monday (June 1), the company said it plans to use the net proceeds from the public offerings and the private placement for general corporate purposes, including capital expenditures for AI infrastructure and global compute, and to use those from the ATM program primarily to meet tax obligations associated with the vesting of employee equity awards.

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“AI is driving an expansionary moment for Alphabet,” the company said in a Monday press release. “The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels…

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