Alphabet announced on Monday its plan to sell $80 billion in stock, including a $10 billion investment from Berkshire Hathaway.
The company stated that the funds will be used to invest in its AI compute infrastructure to meet soaring customer demand.
“Alphabet is experiencing strong demand for its AI solutions from both enterprises and consumers, surpassing available supply,” the company said. “To support this growth, we are scaling our investments to expand our infrastructure.”
Google is significantly increasing its AI-related spending, revising its capital expenditure forecast for 2023 to $180 billion $190 billion, up from earlier estimates of $175 billion $185 billion.
CEO Sundar Pichai highlighted concerns about “compute capacity” including power, land, and supply chain constraints as key challenges in scaling to meet demand.
Source (CNBC)
