Alphabet to raise $80bn by share issue to expand AI capabilities
To finance a substantial expansion of its AI capabilities, Alphabet is preparing to sell $80 billion (€68 billion) worth of shares. The financial strategy includes a combination of long-term sale programmes, public offerings and a capital injection of $10 billion (€8.6 billion) from Berkshire Hathaway. According to the company, the need for this capital stems from an overwhelming surge in demand for AI services from both private individuals and businesses, which has outstripped its current technical capacity and made the rapid construction of new data centres necessary.
The move coincides with a broader trend in which AI-focused companies are turning to the public markets. Anthropic, the creator of Claude AI, has filed a confidential IPO application with the SEC, with the financial details remaining private for now. This follows a massive funding round that brought the company’s valuation to $965 billion (€828 billion). Likewise, OpenAI is expected to make the move to becoming a publicly listed company before the end of the year.
SpaceX stock market plans
This momentum is further reinforced by the fact that Elon Musk’s SpaceX, which is now integrated with xAI, is preparing for one of the largest share sales in history, with a potential valuation of $1.75 trillion (€1.5 trillion) and investor presentations set to begin soon.
Industry experts, including Dan Ives of Wedbush Securities, suggest that the combined moves could breathe new life into the stagnating IPO market.
Other analysts, however, warn that the main concern for investors will be whether the high premiums paid for those shares are in line with the actual economic usefulness and long-term commercial viability of AI technology.
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