Google’s parent company Alphabet announced on Monday that it plans to raise $80 billion to pay for a planned massive AI infrastructure buildout. Alphabet will sell its stake and use the proceeds to pay for “general corporate purposes, including capital expenditures to expand AI infrastructure and global computing,” the company said in a statement.
Part of the plan includes selling $10 billion worth of stock to Berkshire Hathaway, the giant global holding company once headed by Warren Buffett.
“The company is experiencing strong demand for AI solutions and services from businesses and consumers, and the level of demand exceeds the supply that the company is able to provide,” Alphabet said in a statement. “By increasing investment, the company is expanding its underlying infrastructure to support significant growth opportunities ahead.”
The company added that the equity plan represents a way to “fund investments in a balanced manner while maintaining a strong balance sheet.”
Like other tech giants, Google has announced plans for huge investments in computing this year, which will be used to support a flurry of new AI services. At Google I/O last month, CEO Sundar Pichai said the company expects to spend $180 billion to $190 billion on capital expenditures by the end of the year. Google and other tech giants are expected to spend as much as $700 billion in AI capital spending this year.
