The tech giant will issue new shares to fund AI infrastructure and tax obligations, marking a shift from debt financing.
Alphabet announced an $80 billion equity raise, including a $10 billion private placement with Berkshire Hathaway, $15 billion in convertible preferred stock, and $40 billion in future stock sales. The move contrasts with its recent $85 billion debt issuance and years of share buybacks to offset stock-based compensation.
The capital will split between $50 billion for artificial intelligence infrastructure and $30 billion for tax payments. The company could have raised additional debt but opted for equity, raising questions about shareholder dilution and long-term value creation.
Investors are assessing whether the funds will generate sufficient returns to justify the ownership stake ceded. The stock sales begin in the second half of 2026.