Alphabet Raises Funds for AI; Berkshire Hathaway Invests $10 Billion

Google parent company Alphabet announced today that it intends to raise $80 billion in capital through stock sales, including an investment from Berkshire Hathaway, to fund its AI infrastructure expansion plans. Alphabet has brought in Warren Buffett's holding company, Berkshire Hathaway, as a major shareholder, providing a strong endorsement of its long-term AI strategy. In April, Alphabet raised its full-year capital expenditure forecast by $5 billion, to between $180 billion and $190 billion. This expanded investment is aimed at capturing the AI computing market, including commercial AI tools and proprietary chips. In this private placement, Alphabet sold $10 billion worth of stock to Berkshire, including $5 billion in Class A common stock at $351.81 per share and $5 billion in Class C capital stock at $348.20 per share, both priced below today's closing price. Steven Check, President and CIO of investment and asset management firm Check Capital Management, stated, "Companies are eager to have shareholders like Berkshire, and all companies would be happy to see Berkshire invest." Berkshire has been gradually investing in Alphabet since the third quarter of last year, building a base of holdings, and this move marks a further increase. Last month, Berkshire announced that it had more than tripled its stake in Alphabet to $16.6 billion, one of its largest investments in common stock.