Business · Axios
Alphabet seeks $80 billion to fund AI buildout
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Alphabet said Monday it plans to raise up to $80 billion in equity to help fund its AI ambitions, which includes a $10 billion investment from Berkshire Hathaway via a private deal.
Key facts
- Alphabet said Monday it plans to raise up to $80 billion in equity to help fund its AI ambitions, which includes a $10 billion investment from Berkshire Hathaway via a private deal
- The Big Tech companies have to invest in AI for fear that it will replace them
- This comes after Alphabet has already sought out additional funds by issuing corporate debt, becoming the first company in modern history to issue a 100-year bond
- One of the world's biggest companies, which has had historically high cash flow, is seeking more cash to keep up in the AI race
Summary
One of the world's biggest companies, which has had historically high cash flow, is seeking more cash to keep up in the AI race. Alphabet said the proceeds will support "capital expenditures to scale AI infrastructure and global compute" amid "unprecedented customer demand. $30 billion in underwritten public offerings, split between mandatory convertible preferred stock and common stock. $40 billion through an at-the-market stock offering program expected to begin in Q3.