MOUNTAIN VIEW, Calif. – June 1, 2026 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced equity offerings totaling $80 billion, in expected aggregate amount, as part of its plan to fund investments in its world-class AI compute infrastructure to meet its unprecedented customer demand.
Offerings
These offerings consist of:
- Concurrent underwritten offerings: 15 billion in depositary shares representing mandatory convertible preferred stock; and $15 billion in Class A Common Stock and Class C Capital Stock; and
- At-the-market offering: $40 billion at-the-market, or ATM, offering program for Class A Common Stock and Class C Capital Stock over time, expected to begin in Q3 2026.
Private Placement
In addition, Alphabet has reached an agreement to sell 5 billion in Class A Common Stock at a price of 5 billion in Class C Capital Stock at a price of $348.20 per share.
This investment by Berkshire Hathaway adds to the position it has built since Q3 2025.
Use of Proceeds
Alphabet intends to use the net proceeds from the concurrent underwritten public offerings and the concurrent private placement for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute. A portion of the net proceeds from the depositary share offerings, specifically, will be used to pay the cost of the related capped call transactions described below. Alphabet intends to use the net proceeds from the ATM program primarily to facilitate, for a period of time, an administrative change to how it meets tax obligations associated with vesting of employee equity awards. The company expects approximately $30 billion of ATM program proceeds will be used to meet these 2026 calendar year tax obligations. Any additional proceeds will be used for general corporate purposes.
Investing in a Balanced Way
AI is driving an expansionary moment for Alphabet. The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply. By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.
During its Q1 2026 earnings call, Alphabet announced that its 2026 capital expenditures are expected to be 190 billion, and that it expects 2027 capital expenditures to significantly increase compared to 2026.
This equity offering is part of Alphabet’s plan to fund its investments in a balanced way while retaining a healthy balance sheet. Alphabet’s other sources of funding include:
- Strong operating cash flow (over the 12 months ended March 31, 2026, Alphabet generated $174 billion of operating cash flow); and
- Debt issuances (over the last year, Alphabet has raised over 100 billion).
Alphabet’s AI Momentum
Alphabet’s planned investments will support its business momentum, including:
- Overall: Alphabet revenue grew 22% year-over-year, to $110 billion, in Q1 2026.
- Google Search & Other: Revenue grew 19% year-over-year in Q1 2026.
- Google Cloud: Revenue grew 63% year-over-year in Q1 2026, with backlog nearly doubling quarter-over-quarter to more than $460 billion, with approximately 50% expected to be recognized as revenue over the next 24 months.
- Google Subscriptions: Google reached 350 million paid subscriptions, with Q1 2026 representing the company’s strongest quarter ever for consumer AI plans.
- Developers: Google now has over 8.5 million developers building new experiences with its models monthly and its first party model APIs are processing 19 billion tokens per minute, a 6x increase year-over-year.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC are acting as joint book-running managers for the underwritten offerings. Goldman Sachs & Co. LLC is acting as placement agent in relation to the private placement.
At Google I/O last month, CEO Sundar Pichai said that the company expects to spend between 190 billion on capex before the year is out. Google and other tech giants are expected to spend as much as $700 billion this year on AI capex.