TLDR
- Alphabet launched an $84.75 billion capital raise to fund AI infrastructure expansion
- The Gemini app surpassed 900 million monthly active users as of May, more than doubling year-over-year from 400 million
- Paid subscriptions reached 350 million users, while AI Overviews now serves over 2.5 billion monthly users
- Google Cloud’s backlog nearly doubled quarter-over-quarter to over $460 billion, with more than 50% expected to be recognized within 24 months
- Alphabet cut Gemini serving costs by 78% while scaling to 3.2 quadrillion tokens processed monthly
Alphabet is moving fast and spending big to keep its AI lead.
On June 3, 2026, the company disclosed an $84.75 billion capital raise aimed at expanding its artificial intelligence infrastructure. The offering includes Class A and Class C stock priced at $355.20 and $351.80 per share respectively, plus Mandatory Convertible Preferred Stock at $50 per depositary share.
GOOGL was trading around $361 at the time of the announcement, down slightly at -0.19% on the day.
Net proceeds from the stock offerings are expected to come in at roughly $17.8 billion, with the preferred share component adding another $16.6 billion after discounts and expenses. The raise includes a $40 billion at-the-market offering and a $10 billion private placement.
The Class A and Class C offerings are expected to close June 4, with the depositary shares following on June 5.
Gemini Growth
The headline metric driving investor attention is Gemini’s user growth. The app hit 900 million monthly active users in May 2026, up from 400 million in the same period a year ago. That’s more than double in twelve months.
Paid subscriptions climbed to 350 million users. AI Overviews, Google’s AI-generated search summaries, now reaches more than 2.5 billion users per month.
Alphabet also reduced the cost of serving Gemini by 78% while scaling up. The company processes 3.2 quadrillion tokens monthly across its platforms. Gemini 3.5 Pro is expected to launch in June, following the rollout of Gemini 3 in November.
Cloud Backlog Doubles
The Cloud division is showing equally strong momentum. The backlog nearly doubled quarter-over-quarter to more than $460 billion. Alphabet expects to recognize over half of that within the next 24 months.
In Q1, the company signed twice as many deals in the $100 million to $1 billion range compared to prior periods. Enterprise demand is currently exceeding available supply.
Alphabet kept its full-year capital expenditure guidance at $180 billion to $190 billion for 2026, but told investors capital spending will increase further in 2027.
The company’s market cap sits at approximately $4.37 trillion. Its price-to-earnings ratio is currently 27.34.
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