Alphabet is Raising $84.75 Billion to Win the AI Wars. Should Investors Celebrate or Worry?
Alphabet is finding new ways to fund its $180 billion to $190 billion AI budget.
Alphabet is Raising $84.75 Billion to Win the AI Wars. Should Investors Celebrate or Worry?
Overview
Tech giant and Google parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) has spent billions of dollars buying back its stock over the past decade. But Alphabet is reversing course in a big way, announcing a massive $84.75 billion equity offering earlier this month.
In other words, Alphabet is selling new shares of stock to raise capital to fund its artificial intelligence (AI) investments. Alphabet has primarily funded its AI spending over the past several years with cash flow. Now, the company is pulling out the stops to win the AI war it's waging with other hyperscalers, including OpenAI and Anthropic. Alphabet plans to spend $180 billion to $190 billion this year alone.
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Originally published at www.fool.com.



