Alphabet planning to raise 80 billion in stock sales, including this $10 billion investment from Berkshire.

Our McKenzie Sagalos joins us with some details. Definitely a talker today, Mac.

Yes, it is. So Carl, Alphabet shares actually bouncing off the morning lows as investors digest the company's first equity raise in two decades.

A deal tied directly to its AI infrastructure ambitions.

The structure here, it's $10 billion from Berkshire, $30 billion in underwritten offerings,

and then a $40 billion ATM, much of that actually tied to employee equity taxes.

I've been speaking to investors, and the concern isn't just dilution.

It's what this says about the cost of funding Google's

AI buildout. Alphabet is one of the biggest cash machines in tech. $165 billion in operating

cash flow last year, money that it would typically put toward buying back its own shares,

though no sign of that so far this year. More than $55 billion that it's taken on in debt since it began raising

in November. But now it's tapping equity markets too. Uppenheimer says the move suggests

credit markets are becoming less favorable for AI data center financing. But for Alphabet,

the question is whether this is simply smart balance sheet management or even the company

looking to lock in capital

before the AI funding market gets more crowded. And that's especially relevant with Anthropic

confidentially filing for an IPO the same day. Open AI and SpaceX also expected to need massive

amounts of capital as they move toward public markets. Now our Leslie Picker, learning from a source close to this deal, that the timing here for

alphabet is coincidental.

They had been studying this dual structure for months, proactively went out to Berkshire, and

sees it as a one-time issuance meant to fund multiple years of needs.

And then on Berkshire being an anchor investor, that's a bullish signal.

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