Alphabet to Raise $80B for AI; Berkshire Backs $10B Stake

Alphabet announced an $80 billion equity offering to fund expansion of its artificial intelligence infrastructure, and Berkshire Hathaway committed $10 billion as the anchor investor. Alphabet shares closed Monday at $372.58, down about 1.02%, and slipped to roughly $367 in after-hours trading.

Alphabet plans to use the capital for AI and data-center spending as it scales compute and cloud services. The company set 2026 capital expenditures guidance at $180 billion to $190 billion, roughly double 2025’s $91.4 billion.

Google Cloud reported $20 billion in revenue in the first quarter of 2026, a 63% year-over-year increase. Alphabet also reported a Google Cloud contract backlog of about $460 billion, which will require additional infrastructure investment.

Berkshire Hathaway tripled its Alphabet stake to about 58 million shares in the first quarter of 2026, a holding then valued near $17 billion. Berkshire’s planned $10 billion subscription would make it one of the largest non-insider holders. Berkshire reported cash of $397.4 billion at quarter-end.

Issuing $80 billion of equity against an approximate $4.5 trillion market valuation implies about 1.8% dilution if fully executed. Company officials described the raise as a way to bring permanent capital rather than add debt amid sector-wide AI spending.

Market participants reacted with modest selling pressure, citing dilution concerns despite the Berkshire commitment. Market analysts have said free cash flow among major cloud providers has compressed during the current AI investment cycle.

Alphabet will file regulatory disclosures with the Securities and Exchange Commission that are expected to provide details on timing, structure and use of proceeds. The filings should clarify pricing, allocation and any shareholder-protection features.

Upcoming SEC documents and investor demand for the offering will determine how markets respond in the near term.