Alphabet's $80B Equity Deal and AI Funding (with Lizzy)

Alphabet raising $80B through equity offerings to fund AI spending, tapping into insatiable investor appetite. Anthropic pulling ahead of OpenAI with faster revenue growth, $47B annual run rate. Four hyperscalers on track to spend over $700B on capex this year.

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Neil Campling 7.5

Alphabet's $80B Equity Deal and AI Funding (with Lizzy)

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Massive AI capex spending and strong demand for AI exposure supports tech, but declining free cash flow and need to tap markets suggests caution.

Alphabet is raising $80 billion through equity offerings to fund AI spending plans.

Lizzy
Neil Campling

Alphabet tapping into insatiable investor appetite for AI exposure; they need to fund AI capex as free cash flow is declining from $70B to $20B this year.

Four hyperscalers (Amazon, Alphabet, Meta, Microsoft) on track to spend over $700B on hyperscale capex this year.
Anthropic filed confidential IPO, pulling ahead of OpenAI.

Lizzy
Neil Campling

Anthropic's revenue run rate now 35% higher than OpenAI; grew from $100M in 2023 to $47B annual run rate last month - fastest growth ever for a software company.

Anthropic valuation nearly $1 trillion, bigger than OpenAI. Claude software on track for $30B revenue run rate.

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