Alphabet halts buybacks, raises $85 billion as AI spending pressures mount
By
Liz Hoffman
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Summary
Alphabet (Google's parent company) has shifted from aggressive stock buybacks to raising capital, signaling the massive financial demands of AI investments. After spending $14 billion per quarter on buybacks over five years, Alphabet did no buybacks in Q1 and announced an $85 billion equity raise — its first since 2005. The move reflects how hyperscalers are increasingly strapped for cash as they pour resources into AI infrastructure and development.
Key quotes
· 3 pulledThe AI bill is coming due.
After averaging $14 billion per quarter in buybacks over the past five years, the most profitable company in the US didn't buy back a single share in the first quarter.
It announced plans to sell $85 billion in new shares — its first equity raise since 2005 (a year after it went public).
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