Alphabet To Raise $80B in Equity, Anthropic Files For IPO

**SPEAKER_2** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News. Bloomberg Tech is live from coast to coast, with Caroline Hyde in New York and Ed Ludlow in San Francisco.

**Caroline Hyde** (0:22)
This is Bloomberg Tech coming up, AI's money race. Alphabet will raise $80 billion, while Anthropic makes its IPO move, and confidential filing is in at the SEC.

**Ed Ludlow** (0:32)
Plus Elon Musk's SpaceX is negotiating to pay razor thin fees to Wall Street firms handling its IPO.

**Caroline Hyde** (0:39)
And HPE soars after its annual sales outlook beat estimates on the back of massive demand for AI infrastructure. We'll be joined by CEO Antonio Neri.

**Ed Ludlow** (0:48)
But there is so much going on in the meantime, and we start the show off with today's big number, Ed. It's $80 billion.
Look, Alphabet sees that $75 billion being raised by SpaceX in its IPO and just says, well, hold my beer, I'm going to do $80 billion. We're seeing it being distributed in really novel ways, maybe trying to limit some of that dilution, Ed, more broadly. But $80 billion in future equity raised to finance AI infrastructure does have an impact on the stock. Now, we're going to have a little look at how we currently are seeing shares of Alphabet slightly under pressure on the day, but only slightly. We're down by 9, 10%. We've actually come off of our lows amid what has been some anxiety in the market more broadly. But dig in to what this equity issue really is.

**Caroline Hyde** (1:31)
Yeah. Here's what we need to know about the package. It includes a $10 billion Berkshire Hathaway investment, 30 billion in public offerings, and then a 40 billion so-called at the market program, ATM, to sell shares from time to time beginning in the third quarter. That means starting on July 1st. Together, the transactions represent one of the largest equity deals of all time. Basically, it's just a capital expenditure story. We know from Alphabet, this is how much CapEx will be this year, and we know that it's going to go up, and BI has an even bigger number.

**Ed Ludlow** (2:01)
It does. Let's get into what BI is all about. Bloomberg Intelligence Analyst Robert Schiffman is joining us, who has analysis out on this today, saying this raise marks an important funding signal for hyperscalers as infrastructure spending moves along a multi-trillion dollar path. They'd already raised $85 billion, Robert, in the credit market. And now they turn to the equity market. What does it mean more broadly for the size of the money that is needed by hyperscalers?

**Robert Schiffman** (2:29)
Yeah, well, put the beer away. Technology companies are popping champagne bottles right now. Listen, I've come on this show time and time again, said I've never been more bullish on the tech sector. And I think this move is wildly bullish. To get such a boost of confidence from, arguably, the world's greatest investor in Berkshire Hathaway, to go against everything I've learned in MathCamp, where the weighted average cost of capital suggests you're supposed to be issuing more debt, and instead, obviously, Alphabet is so confident in ROIs on their investments.
To be able to raise this much money, to have this big of a kiddie, certainly suggests that spending this year, they said was gonna go up significantly. You know, our friends in our equity team are saying they might spend as much as $300 billion next year on CapEx.

**Caroline Hyde** (3:15)
Robert, stay with us. We have some breaking news crossing the Bloomberg Terminal red headline. Trump to get audit immunity even as 1.8 billion fund in doubt. Basically, US officials are continuing with this agreement that bars the government from probing past tax filings of President Trump and his businesses. This is Bloomberg reporting according to a source.
There is a plan to set up an anti-weaponization fund that's now on hold. We're gonna bring you more details of that story if we get it, but coming from Bloomberg virus source, Trump to get audit immunity even as a 1.8 billion fund is now in doubt. Let's get back to our top story. Alphabet raising $800 billion in equity to raise in different structures. What you just said is so important because Alphabet has held our hand on this a little bit. So capital expenditure, $190 billion in the current period of the year. They said it would be higher, going into 27 You just referenced the BI number, which is like CapEx could be $300 billion for a year. Am I right? Am I misspeaking?
That sounds crazy.

**Robert Schiffman** (4:22)
The number's enormous. Listen, the biggest hyperscalers are spending close to $800 billion cumulatively this year. I think it's gonna be well over a trillion next year and five trillion over the next five years. So they're sort of searching the globe for all different sources of capital.