Alphabet To Raise $80B in Equity, Anthropic Files For IPO
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What is the main topic discussed in this episode?
Hi, I'm Carol Masser with a helpful tip to keep you plugged in throughout the market day. Subscribe to the Stock Movers Report from Bloomberg. These are short audio episodes, five minutes or less, delivered right to your podcast feed. Stock Movers fills you in on the day's winners and losers on Wall Street and tells you about the news and data that's driving those gains and losses. Why spend all day watching tickers scroll across your screen? Subscribe to Stock Movers today. On Apple, Spotify, or anywhere else you listen.
Bloomberg Audio Studios, podcasts, radio, news. Bloomberg Tech is alive from coast to coast with Caroline Hyde in New York and Ed Lovelo in San Francisco.
This is Bloomberg Tech coming up AI's money race. Alphabet will raise $80 billion while Entropic makes its IPO move. The confidential filing is in at the SEC.
Thus Elon Musk's SpaceX is negotiating to pay razor-thin fees to Wall Street firms handling its IPO.
And HPE soars after its annual sales outlook beat estimates on the back of massive demand for AI infrastructure will be joined by CEO Antonio Neri.
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 gonna 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 raise to finance. AI infrastructure does have an impact on the stock. Look, we're gonna 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 tenths percent. We've actually come off of our lows amid what has been some anxiety in the market more broadly, but dig into what this equity issuance really is.
Yeah, here's what we need to know about the package. It includes a $10 billion Berkshire Halfaway 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. And basically, it's just a capital expenditures story. We know from Alphabet this is how much capital CapEx will be this year and we know that it's gonna go up and BI has an even bigger number.
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.
Yeah, well put the beer away. Technology companies are popping champagne bottles right now. I I listen, I've come on this show time and time again and 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, you know, arguably the world's greatest investor in Berkshire Hathaway, to go against all um 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. Um to be able to raise this much money, um to have this big of a kitty, certainly suggests that spending next year they said was gonna go up significantly.
You know, our friends on our equity team are saying they might spend as much as three hundred billion next year on CapEx.
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.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:01–6:17
2
What is Alphabet’s $80 billion equity raise and why does it matter?
6:17–9:26
3
How is the $80 billion split between Berkshire, public offerings and an ATM program?
9:26–31:05
4
Why is Anthropic’s confidential IPO filing a game‑changer for the AI race?
31:05–49:07
Speakers
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