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Alphabet to raise $84.75 billion in upsized equity offering to fund AI ambitions
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The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. June 3 (Reuters) - Alphabet has increased the size of its equity offerings to $84.75 billion, in a sign of strong investor appetite for big tech companies as they expand their AI infrastructure and computing power. On Monday, the Google parent said it would raise $80 billion, as big tech companies compete to out-build each other with AI data centers to get ahead in what executives see as a once-in-a-generation AI race. In a filing dated June 2, Alphabet said it now aimed to raise $18 billion through the sale of Class A and C shares and $16.75 billion from depositary shares. It had earlier planned to raise $30 billion through concurrent public offerings backed by investment banks, split evenly between the two. The company's plans to raise $10 billion through a private placement of shares to Berkshire Hathaway and another $40 billion at-the-market offering program in the third quarter remain unchanged. The stock offerings are set to finalize on June 4 with the depositary shares closing a day later, the company said. Alphabet raised its annual capital spending forecast by $5 billion to between $180 billion and $190 billion in April. The world's largest tech companies are tapping debt markets and raising equity to bolster AI infrastructure, marking a shift for Silicon Valley firms that typically relied on cash to fund their investments. Tech giants' combined spending is now set to exceed $700 billion this year, up from their prior expectations of about $600 billion. (Reporting by Jaspreet Singh in Bengaluru; Editing by Leroy Leo)
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