https://news.einfomax.co.kr/news/articleView.html?idxno=4417864
https://www.reuters.com/legal/transactional/alphabet-raise-80-billion-equity-capital-ai-spending-2026-06-01/
The following is a summary of the Reuters article Jemina.
1. 80 Billion Dollar Fundraising Method
Alphabet will not secure capital at once but will raise it in three ways to minimize market impact.
Warren Buffett's Berkshire Hathaway Investment ($10 billion): Berkshire Hathaway, led by Warren Buffett, will invest $10 billion through a private placement (Private Placement). (A shares $5 billion, C shares $5 billion, purchased at a price about 6.5% discount from the closing price at the time)
Public Offering ($30 billion): Mandatory convertible preferred stock and Class A and C common shares will be issued through investment banks in the form of a public offering.
Continuous Stock Issuance Program ($40 billion): From the third quarter of 2026, it plans to operate an 'at-the-market' (ATM) program and sell off shares gradually while observing market conditions. About $300 billion of this will be used for paying taxes related to employee stock compensation.
2. Background of Fundraising: "AI Infrastructure War"
Supply Shortage Problem: Currently, the demand for AI solutions and services from companies and consumers far exceeds Alphabet's computing supply capacity. Sundar Pichai CEO also recently stated that "computing resources are constrained in the short term."
Astronomical Costs: Alphabet raised its annual capital expenditure (CAPEX) forecast for 2026 by $5 billion to $180 billion-$190 billion, and predicted that significantly more investment would be needed in 2027.
