Buffett Reveals $31 Billion Alphabet Bet, Citing AI Capex Race

3 articles · Updated · Fortune · Jul 16

$31 billion is now Berkshire Hathaway’s Alphabet stake, and Warren Buffett said he personally initiated it, not incoming CEO Greg Abel.
Buffett said Google became investable once AI competition forced it and other hyperscalers to spend hundreds of billions on data centers and chips—capital intensity he likened to railroads and utilities.
An additional $10 billion was invested just last month after Berkshire began building the position in Q3 2025, making Alphabet Berkshire’s No. 5 or 6 holding.
Alphabet shares rose nearly 4% on Wednesday and kept climbing Thursday, lifting Larry Page’s net worth above $300 billion for only the second time, according to Forbes.
Buffett still framed the AI spending boom as a costly race companies “don’t have any choice” but to join, even as he called Google more likely to win than most Wall Street offerings.

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Why did Buffett back the Alphabet investment despite his deep concerns over its massive AI spending?

Is new CEO Greg Abel's portfolio shake-up the end of Berkshire's traditional investment philosophy?

Berkshire’s $10 Billion Private Placement in Alphabet: A Strategic Pivot to AI Under Greg Abel

Overview

In June 2026, Berkshire Hathaway made a major $10 billion private placement in Alphabet, deepening their strategic relationship as Alphabet raised $80–85 billion to fund its aggressive expansion in artificial intelligence infrastructure. This investment highlights Berkshire’s growing confidence in Alphabet’s AI ambitions and marks a significant shift in its portfolio strategy under new leadership. As Alphabet ramps up capital spending to $180–190 billion for AI in 2026, Berkshire’s move signals a new openness to technology investments, reflecting both the opportunities and risks of a more tech-focused approach for the future.

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