Jakarta, INTI - Google's parent company, Alphabet, plans to raise USD 80 billion through a stock offering.
As reported by The Business Times on Tuesday, June 2, the funds will be used to finance the development of artificial intelligence (AI) infrastructure.
Berkshire Hathaway is reportedly one of the potential investors. The company will reportedly invest up to USD 10 billion.
Alphabet recently raised its annual capital expenditure forecast by USD 5 billion to between USD 180 billion and USD 190 billion.
Google’s Further Developing Its AI Chips
Google is seeking to capitalize on the growing interest in its AI chips, known as Tensor Processing Units (TPUs).
"The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company's available supply," Alphabet said.
TPUs are a key alternative to Nvidia's advanced chips, whose massive computing power is needed in AI development.
Berkshire's latest investment further strengthens its position in Alphabet. Last month, Berkshire announced that it had more than tripled its stake in Google's parent company to USD 16.6 billion.
Alphabet raised more than USD 85 billion in debt last year, bringing its total debt to more than USD 100 billion.
Conclusion
Alphabet, Google's parent company, plans to raise USD 80 billion through a stock offering to fund the development of artificial intelligence (AI) infrastructure. Berkshire Hathaway is named as one of the potential investors with a planned investment of up to USD 10 billion. The fundraising plan also comes amidst high demand for AI investment.
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