Alphabet, the parent company of Google, announced on Monday its intention to raise $80 billion to fund the construction of large-scale artificial intelligence (AI) infrastructure. The company will offer shares for sale and allocate the proceeds to general corporate purposes, including capital expenditures to expand AI infrastructure and global computing capacity. This is reported by Techcrunch.com reports .
As part of the plan, $10 billion worth of shares will be sold to Berkshire Hathaway, the major global holding company founded by Warren Buffett. In its statement, Alphabet noted that demand for AI solutions and services from businesses and consumers is exceeding the company's current supply levels.
By increasing investments, the company aims to expand its fundamental infrastructure to support future growth opportunities. According to company representatives, the share sale will allow for balanced financing of investments while maintaining a strong balance sheet.
Like other tech giants, Google has announced massive investments in computing power this year to support new AI services. At the Google I/O conference held last month, CEO Sundar Pichai stated that the company expects to spend between $180 and $190 billion on capital expenditures by the end of the year.
Overall, Google and other major tech companies are projected to spend a total of up to $700 billion on AI capital expenditures this year. This race in the sector is expected to usher in a new phase in the global technology market.
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