SpaceX Pact and $84.75 Billion Raise: Alphabet’s Two-Speed Push for AI Dominance

Alphabet secures SpaceX cloud deal and raises $84.75B for AI infrastructure, as Google Cloud revenue surges 63% with $460B backlog.

Alphabet is playing offense on two fronts simultaneously. The company has locked in a cloud-services deal with SpaceX for its Google Cloud unit while simultaneously executing one of the largest capital raises in its history — a combined $84.75 billion equity offensive. The moves underscore a singular strategy: pour every available dollar into the infrastructure needed to win the AI arms race.

Google Cloud’s momentum provides the rationale. In the first quarter of 2026, the division’s revenue surged 63% year over year, and its backlog swelled to more than $460 billion — nearly double the prior quarter. Around half of that backlog is expected to convert to revenue within the next 24 months. The SpaceX agreement, signed on Friday, adds another marquee name to the cloud roster, signaling that deep-pocketed customers continue to lock in capacity at a time when compute demand is soaring.

To fund that expansion, Alphabet has expanded its equity-issuance program to roughly $84.75 billion, driven by strong institutional appetite. The breakdown includes $18 billion from the sale of Class A and Class C shares, $16.75 billion from depositary shares, a $40 billion at-the-market program, and a $10 billion private placement — all remaining active. Parent-company revenue climbed 22% to $110 billion in the same quarter, but it is the cloud unit’s growth profile that justifies the aggressive capital intake.

The stock, however, has taken a breather. Alphabet’s Class A shares closed Friday at €320.25, shedding 1.79% for the week and 5.43% over the past 30 days. The pullback comes after a blistering run: the shares are still up 19.01% year to date and 117.71% over the past twelve months. From the 52-week high of €350.75 reached in May, the stock sits about 8.7% lower. The relative strength index of 49.2 points to neutral momentum — neither overheated nor under pressure.

Technically, the stock remains well anchored above its 50-day moving average of €303.83 and well above the 200-day line of €262.11. The consolidation is typical after a rally of this magnitude, and the broader uptrend remains intact.

Amid the capital offensive, Alphabet also faced a shareholder meeting on Friday where four proxy proposals related to AI governance went to a vote: AI board oversight, AI-generated misinformation, AI data use, and privacy. The board recommended rejecting all four, arguing that existing frameworks already cover the relevant risks. Because Class A shares carry one vote each, Class B shares ten votes, and Class C shares have no voting rights on shareholder resolutions, the outcome will depend heavily on institutional support. Official results are due within four business days via an SEC 8-K filing.

A separate personnel change also surfaced: Marsida Saraci will take over as principal accounting officer effective June 5, 2026. She has been with the company since April 2011, most recently serving as vice president and controller.

For Alphabet, the cloud division remains the critical operating lever. The SpaceX deal and the capital raise are two sides of the same coin — the company is betting that aggressive investment in AI and compute infrastructure will be rewarded by surging customer demand. Whether shareholders demand sharper guardrails on that bet will become clear once the proxy votes are tallied.