Alphabet Inc. unveiled an $80 billion equity capital program intended to fund the rapid expansion of its artificial intelligence infrastructure, saying demand for its AI products from enterprises and consumers is outpacing available compute capacity.
The financing package includes two principal components: a $30 billion underwritten public offering and a $40 billion at-the-market (ATM) facility that the company expects to begin in the third quarter of 2026. The underwritten portion will be structured across multiple securities, including depositary shares representing mandatory convertible preferred stock, Class A common stock, and Class C capital stock.
In a notable strategic endorsement, Berkshire Hathaway Inc. has committed to invest $10 billion through a private placement tied to the capital raise. That investment is split equally between Class A and Class C shares - $5 billion in Class A shares priced at $351.81 per share and $5 billion in Class C shares priced at $348.20 per share. Alphabet said Berkshire began building its stake in the company during the third quarter of 2025.
Capital demands and spending outlook
Alphabet signaled that its capital requirements to support AI are substantial. The company forecasted capital expenditures in the range of $180 billion to $190 billion for 2026, and it expects spending to rise materially in 2027. The firm described this investment program as necessary to bridge the gap between current compute capacity and surging customer demand for its AI services.
Business metrics cited in support of the raise
Alphabet referenced several performance indicators highlighting momentum in its cloud and AI businesses. Google Cloud revenue grew 63% year-over-year in the first quarter. The division’s backlog nearly doubled quarter-over-quarter to more than $460 billion. The company also reported that developers using its models now exceed 8.5 million monthly, and that first-party API token processing has increased sixfold over the past year.
On a cash flow and balance-sheet basis, Alphabet reported $174 billion in operating cash flow over the trailing 12 months and said it carries debt in excess of $100 billion. The company stated that the equity offering is intended to finance expansion plans while preserving a healthy balance sheet.
Purpose and mechanics of the ATM program
Alphabet said the $40 billion ATM program will be used primarily to address employee tax obligations associated with vesting equity awards. The company plans to shift to a sell-to-cover approach, whereby corporate cash will be used to settle employee taxes and equivalent shares will be issued through the ATM program to replenish company cash. Alphabet expects roughly $30 billion of ATM proceeds to be used for tax obligations in 2026.
Goldman Sachs & Co., J.P. Morgan Securities, and Morgan Stanley are serving as joint book-running managers for the underwritten offerings.
The transaction and accompanying disclosures reflect Alphabet’s view that the pace of demand for AI compute is accelerating and that substantial external capital will be required to support its infrastructure buildup.