Alphabet is making its boldest AI infrastructure move yet, announcing an $84.75 billion capital raise on June 3, 2026. The offering includes $355.20 Class A shares, $351.80 Class C shares, and a Mandatory Convertible Preferred Stock tranche at $50 per depositary share. Net proceeds are expected to reach around $34.4 billion after discounts and expenses, with a $40 billion at-the-market component and a $10 billion private placement. The Class A and C offerings are set to close June 4, and the depositary shares on June 5.
The raise lands at a critical moment. Alphabet’s first-quarter 2026 buyback pause has already stirred dilution worries. The company made no share repurchases in Q1 despite a $69.5 billion remaining authorization. Stock-based compensation remains heavy: $27.1 billion in 2025, with $24.1 billion tied to stock awards. In Q1 2026, 90 million restricted stock units were granted while 44 million vested. Without buybacks to offset those shares, earnings per share could face pressure even as revenue expands — Q1 revenue hit $109.9 billion, up from $90.2 billion a year earlier.
Driving the capital raise is a surge in AI adoption. The Gemini app crossed 900 million monthly active users in May 2026, more than doubling from 400 million a year ago. Paid subscriptions reached 350 million, and AI Overviews now serve over 2.5 billion users monthly. Alphabet cut Gemini serving costs by 78% while scaling to 3.2 quadrillion tokens processed each month. Google Cloud’s backlog nearly doubled quarter-over-quarter to over $460 billion, with more than half expected to be recognized within 24 months. Enterprise demand is outstripping supply, and the company intends to keep 2026 capex at $180–$190 billion, with further increases in 2027.
Technically, GOOG stock is in a delicate spot. After a rally from below $280 to around $400, shares pulled back to the $350–$360 zone — a gap area that traders are watching closely. A defense of this level could signal buyer interest, while a breakdown might shift focus to the $350 mark. Volume surged on the recent red candle, hinting at strong selling pressure.
