Google parent Alphabet said it would raise up to $80 billion (£60bn) in equity to fund its spending on AI chips and other data centre expenses, including a $10bn share sale to Berkshire Hathaway.

The Berkshire deal adds to a significant position that the holding company has been building since the third quarter of last year, and makes it one of Berkshire’s five largest publicly traded stock holdings, alongside its stake in Coca-Cola that is worth more than $31bn.

The private placement with Berkshire will raise its holdings in Alphabet to roughly $32bn, accounting for about one-tenth of its stock portfolio.

The equity raise is a significant shift for large US tech companies, which have up to now largely funded their AI spending with cash or debt.

Alphabet said the fundraise would help “support the significant growth opportunity ahead”.

The company said it would raise $30bn through a mix of common and convertible share sales, followed by a programme to sell up to $40bn more shares over time.

Alphabet reiterated on Monday that it plans up to $190bn in capital spending this year, a figure expected to “significantly” increase next year, on operating cash flow over the past year totalling $174bn.