Berkshire invests another $10 billion in Alphabet, Google owner seeks money for AI

Berkshire Hathaway will invest an additional $10 billion in shares of Alphabet - the owner of Google and one of the leaders in the field of artificial intelligence. This was announced by Alphabet. Berkshire's investment means an increase in its bet on AI, according to CNBC

Berkshire, led by billionaire Warren Buffett until 2026, will buy $5 billion worth of Alphabet Class A shares at $351.81 per share and Class C shares for the same amount at $348.2 per share in a private transaction. This is about 6.5% less than the closing level of the respective securities in trading on Monday, June 1.

Berkshire's investment is part of an equity offering by Alphabet in which Google's parent company is looking to raise $80 billion, according to its announcement. The money is needed to fund "investments in world-class computing AI infrastructure to meet unprecedented customer demand," the company said. Google wants to thus ensure its ambitious spending plans for artificial intelligence, Bloomberg writes.

The offering includes a $30 billion public offering through underwriters (concurrent underwritten offerings) and a $40 billion at-the-market offering, Alphabet said. Goldman Sachs, JPMorgan and Morgan Stanley will handle the underwritten offerings.

"AI is pushing Alphabet into an expansion phase. By ramping up investments, the company is looking to expand its underlying infrastructure to prepare for expected future demand growth," Alphabet said in a statement.

Investors took a negative view of Alphabet's decision to raise funds. Its Class A and Class C shares were down about 1.8% in extended trading on June 1. The main session also ended with a 1% drop for both securities.

Berkshire Hathaway added Alphabet shares to its portfolio in the third quarter of 2025, the penultimate quarter under Buffett's leadership. Then it increased its stake in the owner of Google in the first quarter of 2026 - already without the Wall Street legend at the helm. At the end of March, Berkshire owned more than 52 million Google Class A shares worth $15.6 billion. It bought $1 billion worth of Class C paper. As a result, at the end of the first quarter, Alphabet's shares were the seventh largest in Berkshire's portfolio at almost 6%.

This article was AI-translated and verified by a human editor