alphabet It plans to raise $80 billion in capital to expand its AI and computation infrastructure and meet “unprecedented customer demand.”
the Google The parent company’s equity offerings include a $30 billion underwritten IPO, a $40 billion at-the-market (ATM) program, and a $10 billion sale of shares to… Berkshire Hathaway in a private placement, Alphabet said on Monday (June 1). press release.
Alphabet plans to use the net proceeds from the public offering and private placement for general corporate purposes, including capital expenditures for global artificial intelligence and computing infrastructure, and to use those from the ATM program primarily to satisfy tax liabilities associated with employee equity awards, according to the statement.
“AI is driving an expansionary moment for Alphabet,” the company said in the statement. “The Company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that exceed the Company’s available supply. By expanding the scope of its investments, the Company seeks to expand its core infrastructure to support the next significant growth opportunities.”
PYMNTS reported in April that during an earnings call, Alphabet said so Capital expenditures It reached $35.7 billion in the first quarter, with most of it going toward servers and data centers to support AI workloads.
Alphabet said in its press release on Monday that it expects its total capital expenditures for 2026 to be between $180 billion and $190 billion, and that its capital expenditures for 2027 will increase significantly compared to 2026.
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During its April earnings call, Alphabet also reported that its revenue increased 22% year over year to $109.9 billion in the first quarter, with search revenue up 19% and Google Cloud up 63%. Google Cloud’s gains reflect demand directly related to AI workloads and enterprise adoption, the company said.
Financial Times I mentioned In May this record for American technology giants Spending on artificial intelligence It has eaten into their cash flow. With major technology companies investing a record $725 billion in AI projects, the combined free cash flow of… Amazon,google, Microsoft and dead It is expected to decrease to $4 billion during the third quarter, according to the report. This number would be lower than the average of $45 billion in each quarter since the pandemic.
