Google has increased the size of its record equity raising to almost $85bn, about $5bn more than targeted, in a sign that investors remain unperturbed by the tech giant’s gargantuan AI infrastructure spending plans.
Gross proceeds from the sale of new class A and class C common stock, as well as a $10bn private placement to Berkshire Hathaway, were expected to total $84.75bn, Google’s parent company Alphabet said in a filing on Wednesday. Earlier this week, it said it expected to raise up to $80bn.
After strong demand from more than 75 investors, including large mutual funds and sovereign wealth funds, Google decided to increase the size of an offering of common and convertible share sales to $35bn from $30bn and bring in more of the long-term investors, people familiar with the matter said.