Alphabet’s $80 billion capital raise to expand AI infrastructure lifts Broadcom, a key supplier of custom AI chips for Google.
Broadcom shares surged over 6% in premarket trading after Alphabet announced an $80 billion equity capital raise to bolster its artificial intelligence infrastructure. The move underscores growing demand for AI-related spending, benefiting Broadcom as a strategic partner for Google’s AI expansion.
Broadcom supplies custom AI chips and components for Google’s next-generation AI rack systems under a long-term agreement extending through 2031. The company is also involved in a separate deal with Anthropic, providing access to 3.5 gigawatts of AI computing capacity powered by Google-designed processors starting in 2027.
Alphabet’s funding plan includes a $10 billion private placement from Berkshire Hathaway, adding credibility to the initiative and signaling strong institutional support for AI infrastructure investments.