Alphabet, the parent company of Google and YouTube, plans to raise $80 billion by selling new shares, to fund the rapid expansion of its artificial intelligence infrastructure. The company says demand for its AI services is outpacing the capacity it can currently provide.
Where the money will go
The funds will be invested in Alphabet’s technical infrastructure, including:
- new data centres around the world;
- high-performance AI chips;
- networking and storage.
That capacity is intended to support more AI models for businesses and developers, faster growth in Google Cloud, and new AI features in products such as Search, advertising and YouTube.
How the sale is structured
| Component | Amount |
|---|---|
| Direct sale to Berkshire Hathaway | $10 billion |
| Depositary shares (convertible preferred securities) | $15 billion |
| Class A and Class C common shares | $15 billion |
| Share sale programme from the third quarter of 2026 | $40 billion |
Warren Buffett’s Berkshire Hathaway, which already bought a stake in Alphabet last year, will take $10 billion of the new shares.
Strong growth
Alphabet points to strong momentum in the first quarter of 2026:
- Google Cloud revenue rose 63% year on year;
- more than 8.5 million developers are building with its AI models;
- total revenue rose 21% to $109.9 billion;
- net profit reached $62.6 billion.
Record investment
Alphabet expects capital spending of $180–190 billion in 2026, with a further significant rise forecast for 2027. The company describes the share sale as a balanced way of funding that investment while keeping its balance sheet strong.
Why it matters
It is unusual for a company as profitable as Alphabet to raise money by issuing new shares, which dilutes existing shareholders. The move shows the extraordinary scale of the investment race in AI, in which the largest technology companies are spending sums that exceed the economic output of many countries. Investors will be watching closely to see whether the returns justify the spending — and the debate over the energy and water consumed by data centres is likely to intensify.
