NEW YORK, June 7, 2026, 17:02 EDT
Alphabet has set terms for an enlarged $84.75 billion equity offering, looking to shore up cash for its AI infrastructure push. The tech giant is selling common stock, depositary shares, plus a $10 billion private deal with Berkshire Hathaway, Reuters said. It’s an uncommon stock sale for a company known for strong cash flow, showing how AI expenses are hitting even the biggest players.
The focus for AI has shifted from building models and apps to the backbone—chips, power, land, cooling, and data centers. Alphabet flagged that demand for its AI products and services now outstrips supply. It’s planning $180 billion to $190 billion in capital spending for 2026, with more expected in 2027.
CEO Sundar Pichai called AI “the most profound platform shift” of his lifetime and said Alphabet will need “massive compute investments” to serve users and businesses at scale. CFO Anat Ashkenazi said the funding move is aimed at keeping financial flexibility as the company uses cash flow, debt and equity to drive growth. Blog
Alphabet’s deal is complex. The company priced offerings for both Class A and Class C shares, along with two tranches of 6.25% mandatory convertible preferred stock, which pay dividends now and will convert into common stock later. Alphabet is also running a $40 billion at-the-market program, allowing it to sell shares over time at whatever the market is paying.
Alphabet Class A shares were last at $368.53, off 0.9% from the previous close. Class C shares last changed hands at $365.76, also down 0.9%. Both prices are based on latest available U.S. quotes. The last trades posted after Friday’s New York session.
Big Tech names are talking about it. Meta is looking at a major stock sale, possibly raising tens of billions to pay for AI infrastructure, Reuters said, citing the Financial Times. Meta hasn’t decided yet and could still go with a different plan.
But there’s a catch. Nicholas Hyett, lead alternatives analyst at Hargreaves Lansdown, said Alphabet’s planned raise “dwarfs the world’s largest IPOs.” Matt Britzman, senior equity analyst at the firm, said it’s a sign the company is entering a more “capital-hungry phase.” Investors take on the risk that new shares and future conversion could dilute their stakes before AI spending delivers enough returns. The Guardian
Larry Page, the Google co-founder, is still locked in a private legal fight about two U.S. Virgin Islands properties. Business Insider said mediation broke down last week in the dispute over the 2014 purchase of Hans Lollik and Little Hans Lollik by Page and Lucinda Southworth. The case is now expected to go back to court. This legal dispute is separate from Alphabet’s financing and instead involves Page’s holding company.
