New Delhi, June 2 (IANS) Veteran banker and industrialist Uday Kotak on Tuesday described Google-parent Alphabet Inc.’s massive $80 billion fundraising plan as a “wake up call” for Indian companies, urging businesses to invest aggressively in the future despite current market conditions.

In a post on social media platform X, Kotak drew a sharp comparison between Alphabet’s financial strength and the overall scale of India’s listed companies.

“Google which is cash surplus, just announced an additional capital raise of $80 bn. Google annual profit is $160 bn, last quarter $62 bn, and market cap $4.5 trillion. That is close to total profits and market cap of all Indian listed companies put together,” Kotak wrote.

He said the move highlights the importance of continuous investment and future-focused business expansion, even for companies that are already financially strong.

“It’s a wake up call to all companies to invest into the future, whatever the present maybe. Now that IPL is done and dusted, time for India to focus on business of business,” the veteran banker added.

Kotak’s comments came after Alphabet announced one of the world’s largest equity fundraising exercises aimed at strengthening its artificial intelligence (AI) infrastructure and computing capabilities.

In a press release issued on Monday, Alphabet said it plans to raise $80 billion through a combination of public offerings and a private placement deal with Berkshire Hathaway Inc.

The company stated that the proceeds would be used for general corporate purposes, including scaling AI infrastructure and expanding global computing capacity as competition intensifies in the artificial intelligence space.

The fundraising package includes a $40 billion at-the-market stock sale programme beginning in the third quarter.

Alphabet is also launching $30 billion in underwritten offerings comprising shares and mandatory convertible preferred stock.

Additionally, the company has entered into a separate $10 billion investment agreement with Berkshire Hathaway.

Combined, the transactions represent one of the largest equity fundraising deals globally and underscore the scale of investments major technology companies are making to dominate the AI race.

–IANS

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