Berkshire Hathaway has built a $29 billion stake in Alphabet, adding shares since Greg Abel succeeded Warren Buffett as chief executive. The buying spans open-market purchases and a private placement tied to Alphabet's AI infrastructure spending, and points to confidence in Alphabet's cloud and chip businesses.
Berkshire Hathaway now holds $29 billion of Alphabet stock, split between more than $23 billion in Class A GOOGL shares and $6 billion in Class C GOOG shares. Berkshire only opened the position in Q3 2025, and it has kept adding even as Abel took over as CEO in January.
A new CEO's aggressive bet
Berkshire opened its Alphabet position in Q3 2025, buying roughly 18 million shares. Buffett was still CEO at the time and had indicated he initiated the purchase, but Abel likely had influence given what followed. In Q1 2026, Berkshire bought 40 million more shares.
Then in June, Alphabet sold $10 billion of stock to Berkshire in a private placement as part of an $80 billion stock sale to fund AI infrastructure investments. Of that, Berkshire bought $5 billion in GOOGL shares at $351.81 per share and $5 billion in GOOG shares at $348.20 per share.
Betting on Alphabet's AI infrastructure
The buying also signals confidence in Alphabet's standing in AI. As of Q1 2026, Alphabet ranked third with a 14% share of the global cloud infrastructure market, the infrastructure companies use to build AI applications and agents. It also builds its own chips: Apple and Anthropic use or have used Alphabet-designed chips, and its upcoming Frozen v2 server chip is meant to run Gemini models more efficiently.
Finding value despite heavy capex
Even at a $4.1 trillion valuation, Berkshire still sees a profitable opportunity in Alphabet. Some investors worry the infrastructure buildout behind the AI story won't pay off; for 2026, Alphabet plans to spend between $195 billion and $205 billion on capital expenditures.
Source: Fool
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