Alphabet’s Gemini app surges to 900M users amid $84.75 billion raise

Alphabet announced an $84.75 billion capital raise to fund AI infrastructure as its Gemini app scaled to 900 million monthly active users in May (from 400M a year earlier). The firm cited 350 million paid subscribers, 2.5 billion monthly AI Overviews, 3.2 quadrillion tokens processed monthly and a 78% reduction in Gemini serving costs. Cloud backlog nearly doubled to over $460 billion, with >50% expected to be recognised within 24 months and accelerating large enterprise deals. Offerings comprise ~25.46M Class A and 25.46M Class C shares (priced ~$355.20 and ~$351.80), plus 167.5M Series A and 167.5M Series B depositary shares tied to mandatory convertibles at $50. Net proceeds are roughly $17.8B (stock) and $16.6B (depositary). The raise funds growth and capacity but is dilutive near-term; shares traded slightly higher intraday, reflecting a broadly bullish market reaction.