The Google parent upsized its offering to fund AI infrastructure, reflecting heightened competition among tech giants in artificial intelligence.
Alphabet increased its equity offering to $84.75 billion, up from an initial $80 billion, citing strong investor demand. The company will raise $18 billion through Class A and C shares and $16.75 billion via depositary shares, replacing an earlier $30 billion plan split evenly between the two.
The move follows Alphabet’s April announcement to raise its annual capital spending forecast by $5 billion to between $180 billion and $190 billion. Tech firms are aggressively investing in AI data centers, with combined industry spending expected to exceed $700 billion this year, up from $600 billion.
The offerings are set to close on June 4 and June 5, while plans for a $10 billion private placement to Berkshire Hathaway and a $40 billion at-the-market program remain unchanged.