Experts say Google's $84 billion AI gamble could leave investors waiting a decade for a payoff

Alphabet (NASDAQ: GOOG), owner of all things Google and boasting a $4.33 trillion market cap along with a one-year 111.1% share rate return, is digging deep into its pockets for its massive AI infrastructure efforts. The Mountain View, Calif., technology powerhouse is looking to spend an eye-popping $80 billion on its AI operational needs, a figure that exceeds the annual economic output of countries like Latvia, Cambodia, and Iceland (1).

Experts say the Google parent company’s latest funding push underscores just how fiercely Silicon Valley is competing to dominate the next generation of AI-powered products and services, and how much cash they’re willing to lay out for the cause.

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In a June 2 statement, Alphabet updated and adjusted the pricing of its previously announced registered public offerings of Class A Common Stock, Class C Capital Stock and depositary shares representing interests in mandatory convertible preferred stock. “The gross proceeds of these offerings, together with potential gross proceeds of Alphabet’s previously announced $40 billion at-the-market offering program for the sale of Class A Common Stock and Class C Capital Stock over time, and concurrent $10 billion private placement, represent a total equity raise of $84.75 billion,” the company noted. “The equity capital raise was upsized from the previously announced total equity raise of $80 billion.”

A ’who’s who’ of Wall Street headline firms are running the $84 billion Alphabet book, including Goldman Sachs, JPMorgan, and Morgan Stanley.

With investors watching Google cut one of the biggest financing deals in business history, they’re also learning what happens when some of the world’s largest corporations commit tens of billions of dollars to a technology that is still in its early stages.