Alphabet finishes $85B stock offering to fund record AI spending, including $10B from Berkshire Hathaway

Source Domain: eciks.org

Alphabet completed an $85 billion equity raise on June 3, 2026, marking the largest equity capital transaction in corporate history as the company accelerates its AI infrastructure expansion to meet unprecedented customer demand.

The Google parent company upsized the offering from an initial $80 billion target announced two days earlier, after strong investor demand pushed the total to $84.75 billion. The raise comprises approximately $45 billion from immediate public offerings and a $10 billion private placement from Berkshire Hathaway, with an additional $40 billion to come through an “at-the-market” program beginning in the third quarter of 2026.

Alphabet’s 2026 capital expenditure guidance stands at $180 billion to $190 billion, a significant increase from prior forecasts, driven almost entirely by the need to build out AI compute infrastructure and data centers. This represents the company’s first equity raise in more than two decades, marking a strategic pivot after years of aggressive stock buybacks.

Berkshire Hathaway’s $10 billion commitment—split evenly between Class A and Class C shares at negotiated prices—signals confidence in Alphabet’s AI strategy and marks a notable move by Warren Buffett’s conglomerate into large-scale technology infrastructure investment. The Financial Times reported that the $85 billion raise surpasses the previous record of Petrobras’s $70 billion equity offering, establishing Alphabet’s transaction as the largest on record.

The proceeds will fund investments in AI compute infrastructure, custom processors, and cloud capacity as the company races to compete in the artificial intelligence arms race. Other major technology companies, including Amazon, Microsoft, and Meta, are similarly ramping capital spending on AI infrastructure, with combined capex across these firms exceeding $600 billion in 2026.