Alphabet, the parent company of Google, has announced plans to raise $80 billion by selling shares. The company said the money will be used to expand its artificial intelligence (AI) infrastructure and meet growing customer demand.
In a statement Alphabet said demand for its AI products and services is rising faster than its current capacity. The company said it needs more investment to support future growth and strengthen its AI systems.
As part of the fundraising plan, Alphabet will sell $10 billion worth of shares to Berkshire Hathaway. The investment company is led by well-known investor Warren Buffett. The remaining $70 billion will come through public share sales and underwritten offerings.
Alphabet said businesses and consumers are increasingly using its AI tools. The company wants to expand its data centres, cloud services, and AI platforms to keep up with demand.
Following the announcement, Alphabet’s shares fell about one percent in after hours trading. Despite the drop, the company remains one of the world’s most valuable businesses, with a market value of more than $4.5 trillion.
Like other major technology companies, Alphabet is spending heavily on AI development. Its AI business includes the Gemini family of AI assistants, cloud services, and large scale computing infrastructure.
During its latest earnings call, the company said it expects capital spending to reach between $180 billion and $190 billion this year. It also expects spending to increase significantly in 2027.
Industry analysts believe technology companies will continue investing heavily in AI. According to Goldman Sachs, major firms such as Alphabet, Microsoft, Amazon, and Meta could spend around $800 billion on AI related projects in 2026.
Troy Hooper, co-head of equity capital markets at Merger market, said Alphabet’s decision highlights the intense competition in the AI sector. He explained that computing power is becoming a key factor for future growth and revenue.
Hooper said Alphabet is raising long term funding instead of adding more pressure to its balance sheet. He added that large technology companies now see falling behind in AI as a major business risk.
According to Hooper, companies believe spending too little on AI could hurt their future position in the market. Spending too much may be costly, but it is considered less risky than missing out on the AI race.
He said the companies that build the largest and most efficient computing platforms are likely to become the biggest winners in the AI era.
