Alphabet’s $80 Billion AI Capital Raise Draws Fire From Cramer and Chanos

Alphabet is moving to raise $80 billion in fresh capital to finance its AI infrastructure ambitions, Benzinga reported Monday, drawing immediate skepticism from two prominent Wall Street figures over the structure and sheer scale of the deal.

How Alphabet Plans to Raise $80 Billion

The Google parent’s Alphabet capital raise is structured across three distinct channels. A $10 billion private placement to Warren Buffett’s Berkshire Hathaway anchors the deal. Alongside that, Alphabet is pursuing $30 billion through concurrent public offerings. A further $40 billion at-the-market program is scheduled for the third quarter. The fundraising follows Alphabet lifting its annual capital expenditure forecast to between $180 billion and $190 billion to meet AI-driven demand.

Cramer Flags Dilution Risk for Ordinary Shareholders

CNBC host Jim Cramer was quick to voice concern on social media platform X. He argued that the at-the-market component would weigh on common shareholders and called it “NOT a good idea.” Cramer acknowledged that drip-feeding shares through an ATM program may appear more palatable than a single large block sale. However, he warned that mishandling the approach could turn GOOGL into “a real slog” for investors holding the stock.

Chanos Questions Why the Money Is Needed at All

Short-seller Jim Chanos raised a different objection. He pointed out that Alphabet held roughly $126 billion in cash and marketable securities as recently as March 31. His implicit question was straightforward: why raise $80 billion externally when the company already sits on a considerable cash cushion? The criticism from Chanos adds a fundamental challenge to the deal’s rationale, separate from Cramer’s structural concerns.

Background: Alphabet’s Spending Surge

Alphabet has been escalating AI investment for several quarters as competition with Microsoft, Meta, and Amazon intensifies across cloud and AI services. The revised capex range of $180 billion to $190 billion annually represents a significant step up from earlier guidance. Berkshire’s participation provides a marquee endorsement and signals that at least one high-profile institutional investor sees a credible return on that spending.

Where GOOGL Stock Stands Now

Shares closed Monday at $376.37, down just over 1%. Overnight futures slipped a further 2%. Year-to-date, GOOGL has gained roughly 20%, roughly in line with the Nasdaq 100’s 21% advance over the same period. The stock has underperformed over the past month, falling close to 2.5%.

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