Google parent company Alphabet said Monday that it plans to raise $80 billion to help pay for the massive buildout of artificial intelligence infrastructure it has planned. Alphabet will sell that amount in stock and then use the funds to pay for “general corporate purposes, including capital expenditures to scale global computing and artificial intelligence infrastructure,” the company said. in a statement.
Part of the plan involves selling $10 billion in stock to Berkshire Hathaway, the huge global holding company formerly run by Warren Buffett.
“The company is experiencing strong demand for its AI solutions and services from businesses and consumers, at levels that exceed the company’s available supply,” Alphabet said in its statement. “By expanding its investments, the company seeks to expand its critical infrastructure to support the significant growth opportunity ahead.”
The company added that the share plan represented a way to “finance its investments in a balanced manner while maintaining a healthy balance sheet.”
Like other tech giants, Google has announced plans for a massive investment in computing this year, which will be used to support a flood of new AI services. At Google I/O last month, CEO Sundar Pichai he said that The company expects to spend between $180 billion and $190 billion in capital expenditures before the end of the year. Google and other tech giants are expected to spend up to $700 billion this year in AI capital spending.
