Investing.com -- Alphabet Inc. (NASDAQ:GOOG, NASDAQ: GOOGL) announced a $84.75 billion capital raise to fund artificial intelligence infrastructure expansion as the company disclosed record growth across its Gemini platform and cloud services.

The tech company’s Gemini app reached over 900 million monthly active users as of May, more than double the 400 million users reported during the same period last year. Paid subscriptions climbed to 350 million users, while AI Overviews now serve more than 2.5 billion users each month. Alphabet processes 3.2 quadrillion tokens monthly across its various platforms.

Alphabet reduced Gemini serving costs by 78% while achieving this scale. The company plans to launch Gemini 3.5 Pro in June, following the Gemini 3 rollout in November.

Enterprise demand currently exceeds available supply, according to the company. Alphabet’s Cloud division backlog nearly doubled quarter-over-quarter to over $460 billion. The company expects to recognize more than 50% of this backlog within the next 24 months. During the first quarter, Alphabet signed twice as many deals in the $100 million to $1 billion range compared to previous periods.

The capital raise includes 25,459,689 shares of Class A Common Stock priced at $355.1982 per share and 25,459,689 shares of Class C Capital Stock priced at $351.8018 per share. The company is also offering 167,500,000 Series A depositary shares and 167,500,000 Series B depositary shares, each representing a 1/20th interest in newly issued 6.25% Mandatory Convertible Preferred Stock, priced at $50 per share. The total includes a previously announced $40 billion at-the-market offering program and a concurrent $10 billion private placement.

Underwriters received a 30-day over-allotment option for up to 3,818,953 additional shares each of Class A and Class C stock, alongside a 13-day option for up to 50,000,000 additional depositary shares. The Class A and Class C offerings are expected to close on June 4, 2026, followed by the depositary share offerings on June 5, 2026.

Net proceeds from the core stock offerings will yield approximately $17.8 billion, while the depositary shares will generate roughly $16.6 billion after underwriting discounts and expenses.

Alphabet maintained its current full-year capital expenditure guidance of $180 billion to $190 billion but notified investors that capital spending will increase in 2027 compared to 2026.