- Berkshire Hathaway has invested an additional $10 billion in Alphabet, Google's parent company.
- Under the deal, Berkshire will buy $5 billion worth of Alphabet's Class A shares and $5 billion of its Class C shares.
- The deal is part of Alphabet's plan to raise $80 billion via stock sales to fund the expansion of its AI infrastructur
Berkshire Hathaway has invested an additional $10 billion in Alphabet, the parent company of Google, in its attempts to cash on the artificial intelligence boom. The new purchase makes Alphabet one of Berkshire's biggest recent stock investments.
The deal will see Berkshire buy $5 billion worth of Alphabet's Class A shares at $351.81 per share and $5 billion worth of its Class C shares at $348.20 per share. Berkshire has been steadily increasing its investment in Alphabet over the last nine months.
The investment is part of Alphabet's plan to raise $80 billion through stock sales to fund the expansion of its AI infrastructure, including data centres, cloud computing and custom AI chips, CNBC reported. Alphabet recently raised its 2026 capital expenditure forecast to between $180 billion and $190 billion.
Berkshire believes Alphabet is in a strong position to benefit from the rapid growth of AI because it already has major businesses in Google Search, where AI is changing how people find information, and Google Cloud, which provides AI tools and computing power to businesses.
Bill Stone, chief investment officer at Glenview Trust Company, told Reuters, "This additional purchase underscores that Greg Abel(Berkshire CEO) believes that Alphabet will earn a reasonable return on its AI capex spending even with the firm issuing additional shares."
In the third quarter of 2025, Berkshire Hathaway revealed that it had bought about 17.8 million shares of Alphabet, worth around $4.3 billion. The company then increased its stake, raising its Alphabet holdings by 204% in the following quarters.
By the first quarter of 2026, the value of Berkshire's Alphabet investment had grown to approximately $15.6 billion. With its latest $10 billion purchase, Berkshire's total investment in Alphabet is expected to reach about $32 billion.
Berkshire had nearly $400 billion in cash and cash-like investments sitting on its balance sheet by March 2026. Just one day before the Alphabet deal, Berkshire agreed to buy Taylor Morrison Home for $6.8 billion in cash.
