Alphabet, the parent company of Google, has launched an $80 billion (about 121 trillion won) capital increase to fund artificial intelligence (AI) infrastructure investments.
Reuters reported on Saturday (local time) that "Alphabet said it will raise approximately $70 billion through a public offering and $10 billion (about 15 trillion won) through a private placement to Berkshire Hathaway."
Of the $70 billion to be raised through the public offering, Alphabet plans to sell $30 billion via an underwritten public offering, in which the underwriters purchase the entire amount and resell it, and the remaining $40 billion through an at-the-market (ATM) offering, in which the shares are sold into the market through underwriters from time to time.
Alphabet explained the rationale behind the capital increase, saying, "Demand from enterprises and consumers for AI solutions and services exceeds the company's supply capacity," and "By expanding the scale of investment, the company seeks to broaden the foundational infrastructure that will support the significant growth opportunities ahead."
