Alphabet, Google’s parent company, announced to raise $80 billion to expand the company’s AI infrastructure. Experts say this could be one of the largest equity fundraising exercises ever by a company.
Google is not short of money, but is still planning to raise funds to invest in the future. According to Uday Kotak, former MD and CEO of Kotak Mahindra Bank, Google’s annual profit is about $160 billion. However, in its last quarter alone, it earned $62 billion, and its market capitalization was around $4.5 trillion.
Uday’s message to Indian companies is that ‘It’s a wake-up call.’ Even when a company is already successful and not short of money, it is still planning for future growth. Indian companies should take a lesson from this and keep investing in the future.
He also wrote that “Now that IPL is done and dusted, time for India to focus on the business of business.”His statement was not meant to criticise IPL; instead, it was to encourage companies to focus on business, innovation, technology, investment, and the creation of globally competitive companies.
Alphabet is planning to use the raised funds for various initiatives, including building more AI infrastructure, promoting computing capacity, and data centers, while meeting rapidly growing demand for AI products and services, and boosting its position in the global AI race.
Also read: Oman to Export Fertilisers Petchem to India Post FTA
According to reports, around $10 billion will be raised from Berkshire Hathaway apart from this approx. $40 billion will be raised by selling shares directly in the market, and around $30 billion from other share offerings and convertible securities. This significant step to raise funds is taken due to the demand for businesses and consumers for AI services rising faster than its current capacity.
