Alphabet Inc. has announced one of the largest equity offerings in corporate history, planning to issue $80 billion in new shares to fund the construction of artificial intelligence data centers and computing infrastructure. The move signals the tech giant’s commitment to maintaining its competitive edge in the rapidly escalating AI arms race among Big Tech companies.

Berkshire Hathaway, led by CEO Greg Abel, confirmed it will purchase $10 billion worth of the new shares, making it the largest single buyer in the offering. This marks a significant shift in Berkshire’s investment strategy under Abel’s leadership, following Warren Buffett’s reduced role in day-to-day portfolio decisions.

The equity issuance comes as Google’s parent company faces mounting capital expenditure demands. The company has already committed to spending over $190 billion in capital expenditures this year, with the vast majority directed toward AI infrastructure, including data centers, custom chips, and energy supplies.

Analysts at Barron’s noted that the decision to raise equity rather than issue debt reflects Alphabet’s confidence in long-term AI returns, even as near-term profitability may be pressured by the enormous spending. The move also reduces reliance on credit markets at a time when bond yields remain elevated near multi-year highs.

Google’s cloud division has seen 63 percent year-over-year growth, driven largely by enterprise AI adoption, but the company faces intensifying competition from Microsoft Azure and Amazon Web Services, both of which are also ramping up AI infrastructure investments at unprecedented levels.

Shares of Google parent Alphabet are quietly approaching the $5 trillion mark and are on the verge of overtaking AI leader Nvidia as the world’s most valuable company.

A 140% Annual Surge

Following a 10% surge on Thursday, Alphabet’s 1-year gain now stands at a remarkable 140%, bringing its market capitalization to over $4.6 trillion. The company reported revenue on Wednesday that beat analyst estimates, with Google Cloud revenue surpassing the $20 billion mark.

Meanwhile, the world’s biggest company — AI kingpin Nvidia, now trading with a market cap under $4.9 trillion — is down more than 6% over two days following a Wall Street Journal report that business partner OpenAI missed internal revenue and growth estimates.

What the Options Market Says

The math is straightforward: Alphabet needs to rally another 4% or so, to roughly $401 per share, to achieve Nvidia’s current market cap.

Based on the premiums paid for call contracts around that strike, options traders are assigning about a 53% chance that Alphabet could touch that level at any point between now and May 15. The odds that it will close above $400 on May 22, the Friday after Nvidia’s earnings, are about 30%, according to ThinkOrSwim data.

Nvidia Earnings as a Pivot Point

If Nvidia doesn’t rally into or after its May 20 earnings report — and the stock has indeed fallen after four of its last five earnings releases — the options market suggests Alphabet is likely to become the world’s most valuable company as early as mid-May.

Historical Context

The last time Alphabet was the world’s most valuable company was in 2016, when it briefly nudged Apple from the top spot. If Alphabet overtakes Nvidia, it would mark the first major reshuffling of the tech giant power hierarchy since the AI investment boom began.

This potential cap crossover also reflects the market’s re-rating of Alphabet’s cloud business and AI integration capabilities, while Nvidia’s growth narrative faces questions following the OpenAI revenue report.

Source: CNBC

On April 29, 2026, Alphabet (Google’s parent company) released first-quarter results that beat Wall Street expectations, emerging as the standout performer among Big Tech’s earnings night. Unlike Meta, whose stock declined amid AI spending concerns, Alphabet’s shares surged after the report, earning it the title of the day’s “standout gainer.”

Google Cloud: Revenue Share Climbs to 18%

This quarter, Google Cloud revenue hit a record level, growing 63% year-over-year. This growth rate far exceeded market expectations and significantly outpaced Amazon AWS’s 28% and Microsoft Azure’s growth. Notably, Google Cloud revenue now accounts for 18% of Alphabet’s total revenue, signaling the company’s transformation from a search-centric business into a diversified tech giant.

Alphabet CEO Sundar Pichai stated on the earnings call: “AI is reshaping every industry, and Google Cloud is at the center of this transformation. Our AI infrastructure investments are translating into strong business outcomes.”

2026 Capex Guidance Raised to $190 Billion

The most striking announcement was Alphabet’s decision to raise its full-year 2026 capital expenditure guidance ceiling from approximately $150 billion to $190 billion. This figure even exceeds Meta’s $125-145 billion range, demonstrating Google’s unwavering commitment in the AI infrastructure race.

More notably, the CFO explicitly stated that capital spending in 2027 would “significantly increase.” This framing sparked widespread market discussion about the AI infrastructure investment cycle—are tech giants entering an endless arms race?

Financial Highlights

• Total Revenue: $109.9 billion, up 15% year-over-year, beating analyst estimates of $107.8 billion
• Google Search Ads: Up 11%, demonstrating the resilience of the core search business
• Google Other Revenue: Driven primarily by Google Play, devices, and YouTube subscriptions, up 18%
• Net Income: $26.8 billion, up 32% year-over-year

Market Reaction

Unlike Meta’s stock decline over AI spending concerns, Alphabet’s shares rose over 4% in after-hours trading. Market analysts believe investors have placed higher trust in Google Cloud’s robust growth, viewing Alphabet’s AI investment return path as clearer than Meta’s.

CNBC commented that Alphabet’s earnings “prove that the commercialization of cloud computing and AI services has entered a mature stage, and Google, with its dual advantages in AI models and infrastructure, is winning over enterprise customers.”

Outlook

With Alphabet raising its 2026 capital expenditure to $190 billion, the debate over “AI investment returns” in the tech sector will only intensify. On one hand, Google Cloud’s 63% growth provides strong justification for the massive spending. On the other, the continued escalation of capital commitments means investors will need more patience to see ultimate returns.

Source: CNBC, Bloomberg, Yahoo Finance, MarketWatch

April 28, 2026 — Google has officially approved the U.S. Pentagon to use its artificial intelligence platforms for handling classified information, according to a report by The Wall Street Journal. This decision marks a significant shift in the tech giant’s relationship with the military and has sparked intense internal opposition at Google.

Agreement Details

According to a previously disclosed report by The Information, Google signed a classified agreement with the Pentagon that allows the military to use Google’s AI tools for intelligence analysis and mission planning in highly secure environments. The agreement covers Google’s latest generative AI models and data analysis platforms, which will be used to process highly sensitive national security data.

The Wall Street Journal confirmed that Google has completed the necessary security certification process, bringing its AI infrastructure in line with U.S. Department of Defense standards for classified data processing. This means Pentagon analysts will be able to input and process classified intelligence information — including military operation planning, threat assessment, and target identification — on Google’s cloud-based AI platform.

Internal Backlash

The decision has triggered strong opposition within Google. According to The Washington Post, a large number of Google employees have signed a petition demanding the CEO refuse classified AI collaboration with the military. Employees expressed concerns about AI technology being used for military purposes, arguing that it contradicts Google’s core values.

Google previously faced mass employee protests over its participation in the military’s Maven project, leading the company to commit not to use military AI for weapons systems. This latest classified agreement is viewed as a substantive departure from that commitment.

Industry Implications

Google’s decision could set a precedent for other tech companies collaborating with the military on AI. Microsoft, Amazon, and Anthropic have already partnered with defense departments to varying degrees. As AI’s role in intelligence analysis and decision support continues to grow, the boundaries between tech companies and military applications are being redefined.

Analysts note that this trend reflects the increasingly strategic role of AI technology in national security, while also highlighting the complex balance tech enterprises face between commercial interests, national security commitments, and employee ethical positions.

Source: WSJ, Reuters, The Information