Internet/e-Commerce: Let’s Chat AI – Post(ings) at the intersection of Internet and AI

Research evidence excerpt

Internet/e-Commerce: Let’s Chat AI – Post(ings) at the intersection of Internet and AI

Online Media

Alphabet raises $85bn in capital to fund Cloud Capex

In June’26, Alphabet raised $44.75bn in equity capital and is planning to raise another

$40bn at-the-market program (expected to start in 3Q'26). The total raise of ~$85bn will

support AI infrastructure buildout and fund tax obligations. The $44.75bn raise includes

$34.75bn in hybrid equity (including a $18bn convertible preferred and $16.75bn

depositary shares) and a $10bn strategic investment from Berkshire Hathaway. Alphabet

noted that proceeds will be used for general corporate purposes, including funding AI

compute infrastructure to meet "unprecedented AI demand" that is "exceeding available

supply." Alphabet also noted that some proceeds from the ATM program will be used to

fund CY26 tax obligations, including employee equity compensation. Our Take: Equity

raise has renewed concerns on increasing capex and lower 2027 FCF for the sector. We see

the equity raise as signaling incremental demand for Cloud services, and look for continued

Cloud revenue upside. Also, we think Google’s comments on an expansionary moment for

Search could suggest further acceleration in growth from usage, higher ad loads, and new

ad formats. We maintain our Buy rating. See our note: An ~$85bn equity raise suggests

more capex investment ahead.

Alphabet leases ~110K GPUs from SpaceX under multi-year deal

Per SpaceX's public SEC filings, on June 5, 2026, Alphabet entered into a Cloud service

agreement to access additional compute capacity. Under the deal, Alphabet will lease

infrastructure comprising approximately 110,000 NVIDIA GPUs, along with CPUs,

memory, and related components. Per the filing, Google has committed to pay ~$920mn