On June 2, 2026, Alphabet completed the largest AI infrastructure equity financing in corporate history - an additional US$80 billion from the originally announcedUS$84.75 billion, and one of the notable transactions wasBuffett's Berkshire Hathaway participates in private placement of US$10 billion. This is not only the boldest capital move in Alphabet's history, but also the strongest signal that the infrastructure construction of the entire AI industry has entered the "arms race" stage.
How was $84.75 billion spent?
This financing is divided into three parts: a US$30 billion public offering (including Class A, Class C common stock and mandatory convertible preferred stock), a US$40 billion ATM (market price issuance) plan to be launched in Q3, and a US$10 billion directed placement to Berkshire Hathaway - 5 billion of which are Class A shares ($351.81 per share) and 5 billion are Class C shares ($348.20 per share). The public offering portion was oversubscribed, with Goldman Sachs, J.P. Morgan and Morgan Stanley serving as joint underwriters.
The use of funds directly refers to AI computing infrastructure, data centers and global expansion. Sundar Pichai disclosed at the investor briefing on June 2:Enterprise and consumer demand for Alphabet’s AI solutions has exceeded existing computing power supply, the capital expenditure guidance for 2026 is as high as US$180-190 billion, and will increase significantly in 2027.
Why is Buffett betting on Alphabet?
Berkshire has been building a position in Alphabet since Q3 of 2025. This US$10 billion private placement is one of Buffett's largest single investments in the technology field. The logic behind it is clear: Alphabet generated approximately US$174 billion in operating cash flow in the past 12 months, holds a backlog of US$460 billion in cloud contracts, reaches approximately 2 billion consumers every month through Gemini products, and has the world's largest AI infrastructure - including more than 10 million kilometers of land and submarine optical cables, connecting more than 30 data centers and 40 cloud regions.
What matters more is timing. In the week of June 18-24, Google lost many core AI talents in a row, and its market value evaporated by US$269 billion in a single day. Buffett always enters the market when the market panics——The buying price of $348-352 is already at a significant discount from the February high.. The investment is essentially a bet that the brain drain won't fundamentally change Alphabet's earnings trajectory.
The industry signals behind $84.6 billion
Pichai revealed a key figure: Since the release of Gemini 3, hardware and engineering optimizations have reduced the cost of core AI responses by more than 30%. This means that Alphabet is not only increasing scale, but also improving efficiency - a core strategy to deal with the competitive pressure of OpenAI and Anthropic.
This financing also marks a new stage of capital intensity in the AI industry. Goldman Sachs predicts that global AI infrastructure investment will reach 2026-2031$7.6 trillion, power and chips have become the biggest bottlenecks. Alphabet’s $84.75 billion is just the beginning – in the next few years, whoever has the most computing power will likely dominate the infrastructure layer of the AI era.
Summarize
The US$84.75 billion financing scale, Buffett's endorsement, and clear investment direction in AI infrastructure all show that Alphabet is All in AI. For those who follow the AI industry, this is not just capital news - it is directly related to who will provide the AI services you use in the next few years, how much they will cost, and how fast the innovation will be. AI computing power is becoming the core means of production in this era, and Alphabet is using real money to prove that it will not fall behind in this competition.
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