HEY, BIG SPENDER: Alphabet Is Selling $80 Billion of Stock to Feed Its AI Ambitions—and the Rest of Big Tech May Follow.

The offering is yet another reflection that the artificial-intelligence ambitions of Big Tech are outstripping their substantial operating cash flows, forcing them to tap debt and equity markets. In 2026, Alphabet and four other companies — Microsoft, Amazon.com, Meta Platforms, and Oracle — say they will spend about three-quarters of a trillion dollars on AI data centers together.

In Alphabet’s telling, its capital expenditures will “significantly increase” in 2027, which may be a harbinger for others in the sector. If this news is any indication, the AI investment boom still has legs beyond 2026.

Alphabet’s 2026 capex will total up to $190 billion, while Wall Street analysts expect 2026 operating cash flow of $214 billion to pay for it—a slim margin after subtracting about $10 billion used to fund the company’s dividend. But the cash squeeze is affecting returns to shareholders: Last quarter, Alphabet didn’t buy back any shares for the first time since 2017. This offering may be an indication that share repurchases might not return for a while.

Since May 2025, Alphabet has already borrowed over $85 billion, across six currencies. Its debt total now tops $100 billion, up from $28 billion at the end of March 2025.

A company generating that much cash still has to borrow and issue new shares just to fund its AI expansion seems insane.