Alphabet closes record $90B equity raise for AI buildout

Alphabet ↗1.48% closed its stock offering and Berkshire Hathaway ↘0.37% private placement on June 4, with depositary shares set to close Friday, bringing the total to $90 billion.clearygottlieb
The raise, initially announced at $80 billion on June 1, was upsized twice after strong investor demand; proceeds will fund AI infrastructure and compute expansion.reuters
Goldman Sachs ↘0.23%, J.P. Morgan ↘2.47%, and Morgan Stanley ↘0.80% managed the deal, which topped Petrobras’ roughly $70 billion record from 2010.clearygottlieb

Alphabet Raises Record $85 Billion in Equity Sale With Berkshire Hathaway Backing

Alphabet completed the largest corporate equity offering in history this week, raising approximately $90 billion after underwriters exercised their full options — up from an initial target of $80 billion announced on Monday, June 1. The deal, which includes a $10 billion private placement from Berkshire Hathaway, is designed to fund the Google parent’s accelerating artificial intelligence infrastructure buildout.

A Record-Shattering Deal

Alphabet initially announced plans to raise $80 billion through a combination of public stock offerings, a private placement, and an at-the-market program. The offering was oversubscribed within days, prompting an upsize to $84.75 billion at pricing on June 2, with the final total reaching $90 billion after underwriters exercised their full options to purchase additional securities.techcrunch

The structure includes roughly $20.7 billion in Class A and Class C shares, $19.3 billion in depositary shares representing mandatory convertible preferred stock, a $40 billion at-the-market offering program set to launch in the third quarter, and the $10 billion Berkshire private placement. The stock offering and private placement closed on June 4, with the depositary share offerings scheduled to close on June 5.clearygottlieb

The deal surpasses the previous record set by Brazilian oil producer Petrobras, which raised approximately $70 billion in 2010. Goldman Sachs, J.P. Morgan, and Morgan Stanley served as joint bookrunning managers.bloomberg

Berkshire’s AI Bet

Berkshire Hathaway’s $10 billion commitment — split evenly between Class A shares at $351.81 each and Class C shares at $348.20 each — deepens a position the conglomerate has been expanding since the third quarter of 2025. According to Morningstar, the deal would increase Alphabet’s weighting to 9.5% of Berkshire’s equity portfolio, up from 5.3% at the end of the first quarter.cnbc

The investment marks a notable shift for a firm historically associated with value investing rather than AI-driven growth bets.techcrunch

Funding the AI Arms Race

Alphabet said the proceeds will support “capital expenditures to scale AI infrastructure and global compute,” citing demand for its AI solutions that exceeds available supply. At Google I/O in May, CEO Sundar Pichai raised the company’s 2026 capital expenditure guidance to between $180 billion and $190 billion.fxleaders

The capital raise comes after Alphabet’s stock declined from highs above $400 in mid-May to the mid-$350s by early June, pressured in part by investor concerns over the scale of AI spending. Shares edged lower on June 4 following the upsized offering’s pricing, trading around $356.70.newsbreak

Alphabet faces intense competition from rivals including OpenAI and Anthropic, but its Q1 2026 results — with revenue up 22% year-over-year to $109.9 billion and Google Cloud revenue surging 63% — suggest its AI investments are already generating returns.fxleaders