Google plans to raise $80 billion, with Berkshire investing $10 billion
Google's parent company Alphabet (GOOG.O) is raising $80 billion through an equity issuance, which includes an investment agreement with Berkshire Hathaway aimed at funding its ambitious artificial intelligence spending plans.
Alphabet disclosed in its announcement that this financing action includes a $30 billion underwritten public offering and a $40 billion "at-the-market" (ATM) transaction. As part of this financing plan, Berkshire Hathaway will privately subscribe to $10 billion worth of stock, with Alphabet issuing $5 billion of Class A common stock to Berkshire at a price of $351.81 per share, and issuing an additional $5 billion of Class C common stock at a price of $348.2 per share.
The company stated in a declaration: "The demand for AI has exceeded the company's existing supply capacity. By expanding the scale of investment, the company aims to enhance its infrastructure, thereby providing strong support for the enormous growth opportunities that lie ahead."
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