Foreign media reports indicate that Alphabet originally planned to sell $40 billion in equity instruments to raise funds for Google's AI business, but the initial round of subscriptions exceeded expectations, raising $45 billion. The company also plans to sell another $40 billion in the next quarter, bringing the total to $85 billion.
The first round of subscriptions exceeded the original plan.
This deal is close to breaking the global equity financing record. The report cites data stating that even if the total amount stays at $80 billion, it would still surpass the $70 billion record set by Brazil's state-owned oil company in 2010. Berkshire Hathaway subscribed for $10 billion in the first round of purchases.
Funds are being invested in AI infrastructure.
Pichai stated that this funding is part of the company's multi-year investment plan aimed at seizing AI opportunities and meeting the continued growth in demand from businesses and consumers. Alphabet previously projected at Google I/O that its capital expenditures this year would reach $180 billion to $190 billion, primarily for AI infrastructure and data centers.
Judging from the disclosed information, this round of financing is not simply to supplement general funds, but directly serves the expansion of AI. For the market, the more noteworthy question is whether the public market is willing to continue to foot the bill for large-scale AI investments.
AI companies' IPO window attracts attention.
Foreign media believe that this funding outcome is equally important for AI companies outside of Alphabet. Anthropic is preparing for an IPO, and Alphabet's subscription performance is seen as a positive sign, indicating that the public market, especially large institutional investors, remains willing to fund AI-related assets.
The article also mentions that SpaceX's future IPO is expected to break fundraising and valuation records, while Anthropic's transaction size may even surpass SpaceX's. Meanwhile, OpenAI is also considered a potential candidate for subsequent IPOs or financing.
The key factor remains the open market's ability to absorb the supply.
However, the article also points out that whether the AI funding boom can continue depends on the absorption capacity of the public market, not just the enthusiasm of private equity capital. Over the next five years, AI-related spending commitments have reached nearly $8 trillion, and this funding needs to come from multiple channels, including corporate revenue, loans, and equity financing.
For AI companies preparing for an IPO, the core issue isn't just whether they can tell a growth story, but whether the public market can sustain such a large-scale funding demand over a prolonged period. Alphabet's recent deal provides a positive example, but it also brings this test to the forefront earlier than expected.
