The equity offering aims to fund capital expenditures on AI infrastructure amid rising debt and reduced share buybacks.
Alphabet announced an $80 billion equity offering to support increased capital spending on artificial intelligence infrastructure. The move follows a rise in company debt and a slowdown in stock repurchases, which have reduced outstanding shares by over 10% in recent periods.
The offering coincides with a decline in Google’s stock price, reflecting investor concerns over dilution. Prior buybacks had helped tighten the company’s float, but the new capital raise may offset those gains as spending priorities shift toward AI expansion.
Markets reacted negatively to the announcement, with Alphabet shares falling on Tuesday.