Google’s parent company, Alphabet, said on Monday that it plans to raise around $80 billion to help pay for its massive planned AI infrastructure. This would include selling off that amount of stock and then using the proceeds to fund “general corporate purposes, including capital expenditures to scale AI infrastructure and global compute”.
Alphabet will be selling around $10 billion in stock to Berkshire Hathaway, which is the giant global holding company that was formerly led by Warren Buffett.
This is a way for Alphabet to “fund its investments in a balanced way while retaining a healthy balance sheet.”
The company also noted in this statement that it is experiencing “strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply.” It continued by saying that “by scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”
This is all part of Google’s plan to shift from a Search company to an AI company
A couple of years ago, Google CEO Sundar Pichai had announced that Google is now shifting into being an AI company. Though Search and ads aren’t going anywhere, they are now focusing on AI a lot more. And with good reason. Currently, Google is the leader in AI. So much so, that Apple is now preparing to pay Google billions yearly to use Gemini in Siri and on the iPhone.
Google just spent a week at Google I/O announcing a slew of new AI products, and it’s really just the tip of the iceberg for the company. As the company expects to spend between $180 billion and $190 billion on capex before the end of 2026, as Pichai announced at Google I/O last month.
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