Google plans to raise $80 billion for AI expansion

Google's parent company, Alphabet, plans to raise $80 billion through a series of share offerings to fund a massive expansion of its artificial intelligence infrastructure, as surging demand for AI services from businesses and consumers continues to outstrip its existing capacity.

The company said the funds will be used to scale AI-related data centres, computing capacity and other corporate investments needed to support its growing portfolio of AI products and services. According to Alphabet, demand for its AI solutions has risen sharply across both enterprise and consumer markets.

As part of the fundraising plan, investment giant Berkshire Hathaway will purchase $10 billion worth of Alphabet shares through a private placement, signalling strong investor confidence in the company's long-term AI strategy.

Alphabet intends to raise the remaining capital through public share offerings and an at-the-market stock sale programme. The company said the proceeds will primarily support AI infrastructure and global computing resources while maintaining a strong balance sheet.

The announcement comes as major technology firms accelerate spending on AI. Last month, Sundar Pichai said Alphabet expects capital expenditures of between $180 billion and $190 billion this year, with a significant portion earmarked for AI-related investments.

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Industry analysts estimate that the world's leading technology companies could collectively invest as much as $700 billion in AI infrastructure in 2026, with spending focused on data centres, advanced chips and cloud-computing networks.