Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) shares are trading marginally lower Wednesday morning after the tech giant announced the pricing of an upsized $84.75 billion equity capital raise, scaled up from an initial $80 billion target. The fundraising initiative is explicitly designed to expand Alphabet’s AI infrastructure and global compute capabilities.
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Alphabet Capital Raise Details
Alphabet on Wednesday announced an upsized equity capital raise with pricing details. Gross proceeds are now expected to be $84.75 billion to expand AI infrastructure and compute.
The comprehensive package includes underwritten public offerings of 25.46 million Class A shares priced at $355.1982 and 25.46 million Class C shares at $351.8018, alongside $16.75 billion in mandatory convertible preferred depositary shares.
The Class A Common Stock and Class C Capital Stock offering was upsized to $18 billion from the previously announced offering size of $15 billion. The depositary share offerings were upsized to $16.75 billion from the previously announced offering size of $15 billion.
Notably, Berkshire Hathaway has agreed to invest $10 billion via a concurrent private placement. The remaining capital will be generated through a $40 billion at-the-market equity program slated for the third quarter of 2026.
Net proceeds from the underwritten stock and preferred offerings are estimated at $17.8 billion and $16.6 billion, respectively, with closures expected by June 5. To mitigate potential share dilution upon conversion of the preferred stock, Alphabet has also entered into strategic, privately negotiated capped call transactions.
Alphabet Stock Price Action For Wednesday Morning
GOOGL Price Action: Alphabet shares were down 0.44% at $356.70 at the time of publication on Wednesday, according to Benzinga Pro data.
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