Alphabet Raises $84.75 Billion as Gemini User Base Surpasses 900 Million

Alphabet has unveiled an $84.75 billion capital raise aimed at accelerating its artificial intelligence infrastructure expansion, while reporting explosive growth across its Gemini AI platform and cloud computing business.

The announcement highlights Alphabet’s aggressive push to strengthen its position in the rapidly evolving AI race, where demand for computing power continues to surge.

Gemini Reaches 900 Million Monthly Users

Alphabet revealed that its Gemini application surpassed 900 million monthly active users in May, more than doubling from approximately 400 million users recorded during the same period last year.

The company also reported strong growth in monetization, with paid subscriptions climbing to 350 million users.

Meanwhile, AI Overviews now reach more than 2.5 billion users each month, demonstrating the increasing adoption of generative AI tools across Google’s ecosystem.

At the same time, Alphabet processes an impressive 3.2 quadrillion tokens every month across its various AI-powered platforms and services.

AI Efficiency Continues to Improve

Despite the rapid growth in usage, Alphabet has significantly reduced operating costs.

The company announced that Gemini serving costs have fallen by 78%, allowing it to scale its AI offerings more efficiently while handling substantially larger workloads.

Looking ahead, Alphabet plans to launch Gemini 3.5 Pro in June following the successful rollout of Gemini 3 last November.

Cloud Demand Exceeds Available Capacity

Alphabet also highlighted exceptionally strong demand for its cloud services.

According to management, enterprise demand currently exceeds available supply, reflecting the growing need for AI infrastructure among corporate customers.

The company’s cloud backlog nearly doubled from the previous quarter to more than $460 billion. Alphabet expects to recognize over half of this backlog within the next 24 months.

During the first quarter, the company signed twice as many contracts valued between $100 million and $1 billion compared with previous periods, underscoring accelerating enterprise adoption of AI technologies.

Details of the $84.75 Billion Capital Raise

The financing package consists of several components designed to support Alphabet’s long-term AI investment plans.

The company is issuing 25,459,689 shares of Class A common stock priced at $355.1982 per share and an equal number of Class C shares priced at $351.8018 per share.

In addition, Alphabet is offering 167.5 million Series A depositary shares and 167.5 million Series B depositary shares. Each depositary share represents a one-twentieth interest in newly issued 6.25% Mandatory Convertible Preferred Stock and is priced at $50 per share.

The total fundraising amount includes a previously announced $40 billion at-the-market offering program alongside a separate $10 billion private placement.

Additional Underwriting Options

Underwriters have been granted a 30-day option to purchase up to 3,818,953 additional shares of both Class A and Class C stock.

They also received a 13-day option to acquire up to 50 million additional depositary shares.

The common stock offerings are expected to close on June 4, 2026, while the depositary share transactions are scheduled to close on June 5, 2026.

Capital Raise Supports Massive AI Investments

Alphabet expects the core stock offerings to generate approximately $17.8 billion in net proceeds after underwriting costs and expenses.

The depositary share offerings are projected to contribute an additional $16.6 billion in net proceeds.

The company maintained its previously announced capital expenditure forecast of between $180 billion and $190 billion for 2026. However, management also informed investors that capital spending is expected to increase further in 2027 as AI infrastructure investments continue to expand.

Alphabet Doubles Down on the AI Race

The latest fundraising effort demonstrates Alphabet’s commitment to maintaining leadership in artificial intelligence and cloud computing.

With Gemini approaching one billion users, cloud demand reaching record levels, and enterprise customers increasingly adopting AI solutions, Alphabet appears positioned to continue investing heavily in the infrastructure required to support future growth.

The company’s willingness to raise significant capital suggests management expects AI demand to remain one of the most powerful growth drivers across the technology sector for years to come.