Alphabet's record-breaking $85B raise for Google's AI business

Alphabet sold 45 billion dollars of equity instruments in an oversubscribed offering that exceeded its initial 40 billion dollar target. Berkshire Hathaway bought 10 billion dollars of the shares. The company plans to raise another 40 billion dollars next quarter for a total of 85 billion dollars. The stock sale tops the previous record for equity offerings set by Petroleo Brasileiro SA at 70 billion dollars in 2010. Alphabet reported 110 billion dollars in revenue in the first quarter alone, an increase of 22 percent year-over-year with high profit margins. Chief Executive Sundar Pichai said the funds form part of a multi-year investment strategy to meet AI opportunity and demand from enterprises and consumers. The company expects capital expenditures of 180 billion to 190 billion dollars this year, largely on AI infrastructure and data centers. The offering signals strong public investor appetite for AI-related companies. Nearly 8 trillion dollars in AI spending has been committed over the next five years through revenues, loans and stock sales.