Alphabet plans to raise $80B to pay for AI buildout
Google parent company Alphabet said Monday it plans to raise $80 billion to help pay for the massive AI infrastructure buildout it has planned. Alphabet will sell that amount in stock and then use the money to pay for “general corporate purposes, including capital expenditures to scale its AI infrastructure and global computing power,” the company said. in a statement.
Part of the plan involves selling $10 billion worth of stock to Berkshire Hathaway, the huge global holding company formerly led by Warren Buffett.
“The company is experiencing strong demand for its AI solutions and services from businesses and consumers, at levels that exceed the company’s available supply,” Alphabet said in a statement. “By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunities ahead.”
The company added that the equity plan was a way to “finance its investments in a balanced manner while maintaining a healthy balance sheet.”
Like other tech giants, Google has announced plans for a huge investment in computing this year, with such plans set to be used to power a slew of new AI services. At Google I/O last month, CEO Sundar Pichai said that The company expects to spend between $180 billion and $190 billion in capital expenditures before the end of the year. Google and other technology giants do expected to spend as much as $700 billion in AI investments this year.
