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Google parent Alphabet is preparing an $80 billion funding push as AI demand puts new pressure on its infrastructure plans.
The raise includes public stock offerings, an at-the-market program, and a $10 billion private placement with Berkshire Hathaway. Alphabet said the money will help fund general corporate purposes, including capital expenditures, as it expects to spend $180 billion to $190 billion this year, much of it tied to AI infrastructure and global compute capacity.
The plan underscores how expensive the AI buildout has become for major cloud technology companies, which need more data centers, chips, power, land, and networking capacity to meet demand.
Alphabet plans stock sales to fund AI buildout
Alphabet said Monday it plans to raise $80 billion through a mix of equity offerings as it scales infrastructure for AI services.
The plan includes $30 billion in underwritten public offerings, consisting of $15 billion in depositary shares representing mandatory convertible preferred stock and $15 billion in Class A common stock and Class C capital stock. It also includes a $40 billion at-the-market program for Class A and Class C shares, expected to begin in the third quarter of 2026.
“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 noted in a statement.
“By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead,” the company emphasized.
The company also said it plans to use proceeds from the underwritten offerings and the Berkshire private placement for general corporate purposes, including capital expenditures to scale its AI infrastructure and global compute capacity.
AI demand is stretching compute capacity
Alphabet’s spending plans have grown as Google competes with other hyperscalers to support enterprise and consumer AI products.
During its first-quarter 2026 earnings call, Alphabet said it expects 2026 capital expenditures to reach $180 billion to $190 billion. The company also expects 2027 capital expenditures to increase significantly compared with 2026.
According to CNBC, Google CEO Sundar Pichai has pointed to compute capacity, power, land, and supply chain constraints as key challenges as the company works to meet demand.
TechCrunch reported that Google and other tech giants are expected to spend up to $700 billion this year on AI capital expenditures, reflecting how quickly infrastructure costs are rising across the sector.
Alphabet stated that first-quarter revenue grew 22% year over year to $110 billion. Google Cloud revenue rose 63%, while cloud backlog nearly doubled quarter over quarter to more than $460 billion. The company stated that it anticipates recognizing approximately half of that backlog as revenue within the next 24 months.
Alphabet also noted that Google reached 350 million paid subscriptions and that more than 8.5 million developers are building with its models each month.
Berkshire Hathaway adds to Alphabet position
Berkshire Hathaway will invest $10 billion in Alphabet through a private placement. The investment includes $5 billion in Class A common stock and $5 billion in Class C capital stock.
Alphabet said Berkshire had been building a position in the company since the third quarter of 2025. Berkshire’s Alphabet stake was worth about $20 billion before the new investment, according to CNBC.
Goldman Sachs, J.P. Morgan Securities, and Morgan Stanley are leading the underwriting of the offerings, while Goldman Sachs is acting as placement agent for the Berkshire private placement.
For Alphabet, the raise provides another way to finance AI infrastructure without relying solely on operating cash flow or debt. For enterprise technology leaders, it is another sign that AI demand is turning compute capacity into one of the industry’s most important constraints.
Also read: Google I/O 2026: 10 Key Takeaways on Gemini, Search, and AI Agents