By Katherine Hamilton


Alphabet has increased the size of its equity capital raise to $84.75 billion to help fund its soaring spending on artificial intelligence.

Google's parent company had announced earlier this week that it planned to issue $80 billion in equity, including a $10 billion investment from Berkshire Hathaway.

Alphabet priced its offering of 25.5 million Class A shares at $355.20 a share, and its offering of 25.5 million Class C capital shares at $351.80 a share.

It priced 167.5 million Series A depositary shares at $50 a share and the same number of Series B depositary shares at the same price.

The Class A and C stock offering was upsized to $18 billion from $15 billion, while the depositary share offerings were increased to $16.75 billion from $15 billion.

Alphabet estimates net proceeds from the Class A and C shares will be $17.8 billion, and proceeds from the depositary shares will be $16.6 billion.

The company said it intends to use proceeds for general corporate purposes, including capital expenditures to scale AI infrastructure and global compute.

Alphabet's capital expenditures are expected to double this year compared with the prior year, and be six times higher than they were in 2022, the company said. Most of that spending will be in technical infrastructure.

Demand for Alphabet's AI developments has also climbed. The number of tokens, or data units, its AI platforms process has jumped to 3.2 quadrillion a month, up from 9.7 trillion two years ago.

Its Gemini chatbot app is one of its fastest-growing products, with more than 900 million monthly users, the company said Wednesday.

Alphabet has granted underwriters of the Class A and Class C shares 30-day over-allotment options to buy up to 3.8 million additional Class A shares and 3.8 million additional Class C shares.

Underwriters of the depositary share offerings will have options to buy up to an aggregate total of 50 additional depositary shares, split evenly between the two series, within a 13-day period.

The Class A and C offerings are set to close Thursday, and the depositary share offerings are expected to close Friday.


Write to Katherine Hamilton at katherine.hamilton@wsj.com


(END) Dow Jones Newswires

06-03-26 1218ET