Google’s AI race gets costlier as Alphabet upsizes equity raise to $84.75 billion
Google parent company Alphabet has increased its planned equity raise to approximately $84.75 billion, up from the $80 billion it announced just a few days ago. In particular, the technology giant is looking for capital transfer to meet the huge infrastructure demands of artificial intelligence.
Alphabet now plans to raise $18 billion through the sale of Class A and Class C shares and another $16.75 billion through escrow shares, according to a Reuters report citing a June 2 filing. Alphabet had previously planned to raise $30 billion, split equally between the two categories, through simultaneous IPOs backed by investment banks.
Alphabet confirmed in its investor note that the company also received a $10 billion investment from Berkshire Hathaway and an additional $40 billion through its launch program in the third quarter of the year.
Alphabet’s historic stock rise:
Alphabet’s expanded offering is also poised to make history. Even at the previously announced $80 billion level, Alphabet was on track to complete the largest capital markets transaction ever recorded, according to Bloomberg data. The fundraising will reportedly surpass the nearly $70 billion share sale completed in 2010 by Brazilian oil giant Petrobras, which currently holds the record for the world’s largest stock offering.
In an investor presentation released by the company, Alphabet CEO Sundar Pichai said demand from both businesses and consumers for the company’s AI solutions now “meaningfully exceeds” available supply.
“We are experiencing strong demand from businesses and consumers for our AI solutions and services at levels that significantly exceed our current supply,” Pichai said.
The company currently operates more than 30 data centers and more than 40 cloud regions worldwide, connected via 10 million kilometers of terrestrial and subsea fiber networks.
Talking about the increasing demand for artificial intelligence systems, Alphabet said that two years ago it processed only 9.7 trillion tokens per month. Today, this figure has increased to 3.2 quadrillion tokens per month, representing an increase of more than 300 times.
The fundraise comes as Alphabet ramps up spending to meet growing demand for AI infrastructure. The company raised its 2026 capital spending forecast by $5 billion in April and now expects to spend between $180 billion and $190 billion this year, Reuters reported; Most of the money goes to data centers, network equipment, and AI computing infrastructure.
As companies rush to build the infrastructure necessary to train and run powerful AI models, the report states that major technology companies are expected to have total capital expenditures of over $700 billion in 2026.
In a post on X (formerly Twitter), Pichai thanked investors for supporting the company’s AI strategy.
“On Monday, we announced an equity offering for Alphabet, part of our multi-year investment strategy to meet the AI opportunity ahead and support the demand we are seeing from businesses and consumers,” Pichai wrote. “I am pleased to share that the bids are well subscribed,” he added.
