Alphabet Inc. (GOOG), (GOOGL) shares are sliding in Monday's after-hours session after the company unveiled plans to raise a whopping $80 billion to fuel its AI ambitions. The move includes a notable $10 billion investment from Warren Buffett's Berkshire Hathaway, but investors seem more focused on the dilution than the endorsement.

After the market closed, Alphabet said it would raise the money through a mix of equity offerings: a $30 billion underwritten public offering, a $40 billion at-the-market offering expected to start in the third quarter, and a $10 billion private placement to Berkshire Hathaway. The Berkshire piece is split between $5 billion of Class A stock at $351.81 per share and $5 billion of Class C stock at $348.20 per share.

Berkshire has been quietly building a position in Alphabet since the third quarter of 2025, so this isn't a brand-new relationship. But having Buffett's stamp of approval on a massive capital raise is a signal that the Oracle of Omaha sees long-term value in Alphabet's AI push.

Alphabet says the proceeds will go toward capital expenditures for scaling AI infrastructure and global compute, driven by what it calls "unprecedented customer demand." That's a lot of zeros—$80 billion—to throw at data centers and chips, but the company is betting that the AI boom will justify the spending.

Still, Wall Street isn't thrilled with the near-term dilution. GOOG shares were down 1.98% in after-hours trading, changing hands at $368.90 at the time of publication, according to market data. The stock had been facing resistance even before the announcement, and this capital raise adds another layer of uncertainty for investors worried about the pace of spending.

The bottom line: Alphabet is going all-in on AI, and it's bringing Berkshire along for the ride. But for now, the market is focused on the cost of that bet.