Alphabet plans to raise $80 billion from stock sales, including a $10 billion investment by Berkshire Hathaway, to fund AI compute infrastructure amid strong customer demand. The move supports a raised capital expenditure forecast of up to $190 billion this year as AI demand exceeds current supply.
The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company's available supply.
The capital will fund investments in its world-class AI compute infrastructure to meet its unprecedented customer demand.
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Alphabet reportedly raised about $41.4 billion through stock sales and debt in the third quarter to fund AI-related capital spending. The moves supported $51.355 billion in capex while Google Cloud revenue grew 103 percent year over year.
Alphabet shares slid 10.2% in premarket trading after Q3 results, Reuters reported (Investing.com, updated 6:00 AM AST). Alphabet's release shows Search & other revenue of $63.35B, up 12%, and free cash flow of negative $9.065B; CNBC says Search came in below estimates and FCF was far worse than the $2.70B deficit analysts expected. Nasdaq 100 futures were down about 1% at 5:18 AM AST while Microsoft rose 3.6%, per Reuters.
Sources told CNBC that Chinese AI lab Moonshot has discussed leasing Nvidia Blackwell capacity from European neoclouds, including talks around clusters of 8,000 or more GPUs. No signed lease has been confirmed.
Meta priced $15 billion of senior notes in five tranches on November 3, according to its pricing term sheet, with coupons from 5.85% on 2031 notes to 7.50% on 2056 notes. Bloomberg reported orders peaked at about $58 billion and said the deal is part of a cross-border financing of at least $20 billion that includes a euro debut.
OpenAI has cut its funding target by $10 billion and now seeks about $20 billion at a $1.25 trillion valuation, the Financial Times reported. The round has not closed.
