HomeLatest NewsAlphabet to Raise $80 Billion for AI, Pauses Buybacks

Alphabet to Raise $80 Billion for AI, Pauses Buybacks

Posted: 2 June 2026, 20:03 CET 2 min read

Alphabet announced an $80 billion equity raise to fund AI compute and paused its long-running share buyback program; GOOGL opened about 3.5% lower on June 1.

Alphabet announced on June 1 an $80 billion equity offering to finance an expansion of its artificial intelligence infrastructure and suspended its share repurchase program. GOOGL shares opened about 3.5% lower following the announcement.

The offering package includes a $30 billion concurrent public offering, a $40 billion at-the-market program slated to begin in the third quarter, and a $10 billion private placement. Alphabet said the offerings were “in expected aggregate amount” of $80 billion as part of plans to fund investments in AI compute infrastructure.

Berkshire Hathaway agreed to anchor the private placement with a $10 billion commitment, buying $5 billion of Class A shares at $351.81 per share and $5 billion of Class C shares at $348.20 per share.

Alphabet said proceeds will be used to expand data centers, build custom chips and scale global compute capacity that supports Search, Cloud and its Gemini AI models. The company now expects capital expenditures of $180 billion to $190 billion in 2026, about double 2025 levels, and indicated spending will increase further in 2027.

Since 2016, Alphabet repurchased more than $346 billion of stock, reducing shares outstanding by roughly 13% from a 2019 peak. The new fundraising reverses that repurchase program and raises the company’s share count while providing cash for infrastructure buildout.

Alphabet described the at-the-market program as a mechanism to raise capital over time, with the concurrent offering and private placement securing a substantial portion of the targeted amount up front. The company did not provide a detailed timetable for how quickly the raised capital will be deployed beyond the 2026 and 2027 guidance.

Investors and analysts will track the impact of the equity issuance on earnings per share, share count and free cash flow as Alphabet invests in AI capacity. Market participants have noted the capital intensity of AI buildouts across large cloud providers as a factor for cash flow and financial planning.