Alphabet upsizes equity offering to $84.75 billion

Alphabet Inc. said on June 3 it increased the size of its equity offering to $84.75 billion as it seeks to fund large investments in artificial intelligence data centers and computing power.

The Google parent had announced on June 1 that it planned to raise $80 billion. The company’s updated target points to continued investor demand for large technology companies financing AI infrastructure.

In a filing dated June 2, Alphabet said it now aimed to raise $18 billion through the sale of Class A and C shares and $16.75 billion from depositary shares.

The company had previously planned to raise $30 billion through concurrent public offerings, split evenly between the two share classes. Alphabet said it also plans to raise $10 billion through a private placement of shares to Berkshire Hathaway and another $40 billion through an at-the-market offering program in the third quarter, unchanged from earlier plans.

Timing and structure of the deal

Alphabet said the stock offerings are set to finalize on June 4, with the depositary shares closing one day later.

The company has framed the financing as supporting its push to expand AI infrastructure, including data centers and computing capacity.

Capital spending outlook and broader sector shift

Alphabet increased its annual capital spending forecast by $5 billion in April, projecting expenditures between $180 billion and $190 billion.

The world’s largest technology companies have increasingly turned to debt markets and equity raises to bolster AI and cloud infrastructure, a shift from earlier periods when many relied primarily on internal cash flows. Combined spending by tech giants is expected to exceed $700 billion this year, up from prior expectations of about $600 billion.

Investors will be watching the completion of Alphabet’s June offerings and details on the planned third-quarter at-the-market program, alongside any further updates to capital spending plans.