Alphabet Unveils $80B Equity Offering, $190B Capex, Secures $11B/Yr SpaceX Cloud Deal
GOOG has more than doubled off its 52-week low of $163.33.
Summary
Alphabet announced an $80 billion equity offering, including a $10 billion private placement to Berkshire Hathaway, and raised its 2026 capital expenditure guidance to $190 billion. Concurrently, Google Cloud secured a multi-year deal with SpaceX, valued at over $11 billion annually, for compute resources including 110,000 Nvidia GPUs. The company also made minor staff cuts in Cloud, reallocating resources to AI. This massive capital raise and increased investment plan, alongside a significant new cloud contract, underscores Alphabet's aggressive push into AI infrastructure and services. The equity offering provides substantial funding, while the SpaceX deal is a major win for Google Cloud, with full capacity expected by September 2026.
At the time of this announcement, GOOG was trading at $361.32 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.5T. The 52-week trading range was $163.33 to $404.47. This news item was assessed with positive market sentiment and an importance score of 10 out of 10. Source: Wiseek News.