Berkshire Hathaway Invests $10 Billion in Alphabet's AI Infrastructure

Berkshire Hathaway is investing $10 billion in Alphabet's $80 billion capital raise for AI infrastructure expansion.

Photo: Matheus Bertelli / Pexels

Warren Buffett's Berkshire Hathaway has committed $10 billion to Alphabet's $80 billion capital raise aimed at expanding its AI infrastructure. The investment is part of a private placement, with the remaining funds coming from $30 billion in public share offerings and a $40 billion program for phased share sales starting in the third quarter of 2026. Goldman Sachs, J.P. Morgan, and Morgan Stanley are supporting the offerings. Alphabet stated that the funds are needed to scale its computing capacity for AI, citing 'unprecedented customer demand.'

The company expects to spend between $180 billion and $190 billion on capital in 2026, with a significant increase planned for 2027. In the first quarter of 2026, Alphabet's revenue grew 22 percent to nearly $110 billion. Google Cloud was the standout business, rising 63 percent. The cloud order backlog has nearly doubled to over $460 billion. Critics argue that OpenAI and Anthropic are driving the AI cloud boom, despite both companies still operating at a loss.

Alphabet announced its plans for the capital raise and infrastructure expansion. Source: thedecoder

Key points

Berkshire Hathaway is investing $10 billion in Alphabet's $80 billion capital raise for AI infrastructure.
The remaining funds for Alphabet's capital raise include $30 billion in public share offerings and a $40 billion program for phased share sales starting in Q3 2026.
Alphabet expects to spend $180 to $190 billion on capital in 2026, with a significant jump planned for 2027.
Alphabet's revenue grew 22 percent in Q1 2026 to nearly $110 billion, with Google Cloud rising 63 percent.
The cloud order backlog has nearly doubled to over $460 billion.
Critics note that OpenAI and Anthropic are driving the AI cloud boom, despite both companies still losing money.

WRITTEN BY

Marcus Feld

AI Business & Markets

Marcus reports on AI funding, acquisitions, partnerships, and the business behind the technology.