Google’s parent company Alphabet said on Monday it plans to sell $80 billion (€93 billion) of stock to finance a major expansion of its artificial intelligence (AI) infrastructure.
The announcement comes as cloud chatbot maker Anthropic said it has confidentially filed for an initial public offering. OpenAI, the creator of ChatGPT, is also widely expected to seek a public listing.
Meanwhile, Elon Musk said SpaceX, which merged with his XAI company in February, is planning one of the largest stock sales ever and could launch an offering to investors as soon as this week.
Fundraising campaign to power its artificial intelligence expansion
Google’s parent company Alphabet said its fundraising will include a public stock offering, a long-term stock sale program and a $10 billion private investment from Berkshire Hathaway.
“The company is experiencing strong demand from enterprises and consumers for its AI solutions and services, which exceeds the company’s available supply,” it said in a statement.
The tech giant said this has forced the rapid construction of data centers and computing infrastructure.
Anthropic is moving toward going public on Wall Street
Meanwhile, Anthropic’s confidential filing for its IPO with the Securities and Exchange Commission allows regulators to review the documents, while its financial and business details are not made public until much later in the process.
“The number and price of shares to be offered have not yet been decided,” the company said.
The announcement comes just days after the cloud maker said it had raised $65 billion in funding, valuing the company at $965 billion, ahead of main rival OpenAI, which is also expected to go public later this year.
Elon Musk’s SpaceX is set to launch its IPO roadshow this week, aiming for a valuation of about $1.75 trillion.
Anthropic’s moves “signal the door opening to the IPO market, which has been relatively dormant for some years, with these three major groups preparing to go public later this year,” Wedbush Securities analyst Dan Ives told The Associated Press.
“Whenever there is speculation, there is usually substance and fundamentals to it as well,” Corrigan said. “The question here is whether the price investors are going to pay will match the essence and fundamentals of what AI is actually going to do in the real economy and as a business.”
Edited by: Jennifer Cimino Gonzalez
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