Alphabet just wrote one of the largest checks in corporate history, and it’s made out to artificial intelligence. The Google parent company upsized its equity offering to $84.75 billion on June 3, up from an initial target of $80 billion, a nearly 6% increase driven by investor appetite for AI exposure.
The raise includes Class A shares priced at $355.20, Class C shares at $351.80, and mandatory convertible preferred stock.
The AI arms race has a price tag, and it keeps growing
The company revised its 2025 capital expenditure guidance to $85 billion, up from an initial $75 billion target. Alphabet has projected its 2026 capex to land somewhere between $175 billion and $190 billion.
CEO Sundar Pichai has framed these investments as essential to growth in Alphabet’s Search and Cloud segments. The Gemini app, Alphabet’s flagship AI product, reportedly surpassed 900 million monthly active users by May 2026.
