Berkshire Hathaway to Invest $10 Billion in Alphabet as Part of $80 Billion Share Sale
Berkshire Hathaway announced a $10 billion investment in Alphabet to anchor an $80 billion share sale intended to fund Google's AI infrastructure spending. This marks an unusual strategic shift for Berkshire, which has historically avoided large tech investments and represents Alphabet's first major equity raise since 2005. The move reflects the enormous capital requirements of AI development, with major tech companies' combined capex spending expected to exceed $700 billion in 2026.
Berkshire Hathaway is investing $10 billion in Alphabet as part of a broader $80 billion share issuance by Google to fund artificial intelligence infrastructure spending. The investment represents a notable strategic pivot for Berkshire under new CEO Greg Abel, as the company has historically missed major technology waves—a fact Warren Buffett has acknowledged with regret, citing missed opportunities in Microsoft, Amazon, and Google. Rather than Berkshire's traditional approach of funding corporate takeovers or rescuing troubled firms, this equity investment signals the company's determination not to miss the AI revolution. The deal is also significant for what it reveals about AI financing: Meta, Microsoft, Alphabet, and Amazon have doubled their combined capital expenditure to $450 billion in 2025, with spending expected to exceed $700 billion in 2026. While these companies' advertising, cloud, and e-commerce revenues initially covered AI costs, they have increasingly turned to borrowing and equity issuance—a more expensive financing option—to sustain the buildout.
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Berkshire to invest $10 billion in Alphabet in major AI bet
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