Google plans to raise $80 billion, with Berkshire investing $10 billion

According to Bloomberg, Google's parent company Alphabet will raise $80 billion through a package of equity financing to support its AI infrastructure and computing power expenditure plans. This financing includes a $40 billion ATM stock issuance plan starting in the third quarter, a $30 billion underwriting issuance of common stock and mandatory convertible preferred stock, as well as a $10 billion investment agreement reached with Berkshire Hathaway, which will become one of the largest equity transactions in history.

Alphabet stated that AI is driving the company into an expansion phase, and the company hopes to build infrastructure to support future growth opportunities by increasing investments. Alphabet CFO Anat Ashkenazi previously stated that the company's capital expenditure in 2027 will be significantly higher than the maximum budget level of $190 billion in 2026. Bloomberg Intelligence analyst Mandeep Singh believes that with the support of new financing, Alphabet's capital expenditure could reach $300 billion next year. This move by Alphabet may also divert funds originally intended for companies like SpaceX, Anthropic, and OpenAI, which are planning to go public this year.