Alphabet is preparing a major stock offering to raise $80 billion for AI infrastructure development. Berkshire Hathaway is already ready to participate in the deal. The holding plans to invest $10 billion and become a cornerstone investor.
The market reacted cautiously. Investors were concerned that such a stock issue could dilute the stakes of current shareholders. On Monday, GOOGL shares closed at $372.58, losing 1.02%. After the market closed, the decline continued, with shares dropping another 1.5% to about $367.
Alphabet (GOOGL) stock performance. Source: Google Finance
What Is Behind the $80 Billion Plan
Alphabet is getting deeper into the AI race and is preparing to spend much more on infrastructure. In 2026, the company's capital expenditures could rise to $180–190 billion. For comparison, a year earlier they were $91.4 billion.
Google Cloud is already showing why such investments are needed. In the first quarter of 2026, the segment's revenue reached $20 billion, up 63%. In addition, the company has accumulated a contract portfolio of about $460 billion.
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In this situation, a stock offering looks like a way for Alphabet to quickly raise a large sum without increasing debt. This is important because big tech's spending on data centers, chips, and computing power has already reached record levels.
But investors are not only looking at cloud business growth. They are more concerned about how quickly these investments will start to pay off. Demand for AI services is growing, but the free cash flow of large tech companies is already under pressure due to large-scale spending.
Berkshire Hathaway's Bet on Alphabet
The participation of Berkshire Hathaway made the deal even more prominent. Judging by Berkshire's actions, the company continues to bet on Alphabet. In just the first quarter, its stake grew to 58 million shares worth about $17 billion.
An additional $10 billion will make Berkshire one of the most prominent Google investors. For Greg Abel, this deal could be one of the first major steps after taking over as head of the holding. The investment in Alphabet could be one of the first major decisions of the new team.
Berkshire has enough cash for such a deal. By the end of the quarter, the holding's cash reserves reached a record $397.4 billion. This gives the company the ability to participate in large offerings without serious pressure on its balance sheet.
Share Dilution or Bet on Growth
The main question for Alphabet shareholders right now is simple: what will matter more, the risk of dilution or future growth from AI investments.
If the company raises $80 billion with a market cap of about $4.5 trillion, dilution could be around 1.8%. This figure does not look critical by itself, but the market has become more sensitive to such decisions.
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Previously, BlackRock warned that the largest tech companies' AI spending is already affecting not only individual stocks but also overall market sentiment.
Now investors will be waiting for Alphabet documents for the SEC. These should include details of the offering, deal terms, and possible impact on capital structure.
It is still unclear whether the share price drop was a one-time reaction to the news or if the market is starting to broadly reassess its attitude toward AI spending. The answer will become clearer after the official deal data is published.
