Alphabet announced in June that demand for its AI products now exceeds the computing power it can deliver. The company is raising $80 billion through a combination of stock offerings to build out the infrastructure its customers need.

The funding structure breaks into three parts. Alphabet will conduct a $30 billion underwritten public offering, launch a $40 billion at-the-market program, and sell $10 billion in stock directly to Berkshire Hathaway in a private placement.

All of the money will funnel toward capital expenditures. Alphabet told investors it plans to spend between $180 billion and $190 billion on capex in 2026 alone. For 2027, the company said it expects spending to increase significantly from that level.

The spending surge reflects what’s happening in the AI market right now. Every major tech company is racing to build data centers and purchase chips to run AI models. Google‘s own AI products have seen adoption that strains the company’s existing compute capacity.

Alphabet faces the same bottleneck as other players. Nvidia’s AI chips are in short supply. Data center construction takes time. The mismatch between demand and supply has created urgency for companies to lock in their infrastructure spending now.

The Berkshire Hathaway investment shows a vote of confidence at a moment when tech stocks face scrutiny. It signals that even the world’s most skeptical investor of tech valuations sees AI infrastructure as necessary.

Alphabet’s capex plans dwarf those of previous years. In 2024, the company spent roughly $84 billion across all capex categories. The new trajectory means AI infrastructure alone will consume an outsized share of corporate cash.