Berkshire Hathaway has sealed a $10 billion private share purchase deal with Alphabet (GOOG，GOOGL), betting big on the AI conglomerate that has delivered stronger year-to-date market cap growth than Nvidia, the world’s most valuable firm with a market valuation above $5 trillion.
Under the agreed terms, Alphabet will sell Class A shares to Berkshire at $351.81 apiece and Class C stock at $348.20 per share, splitting the $10 billion placement evenly across the two share classes. The investment marks Berkshire’s continued build-up in Alphabet: the conglomerate first opened its Alphabet position in Q3 2025 and has ramped up holdings for two straight quarters, elevating the Google parent into one of Berkshire’s top core equity holdings after the latest capital injection.
The $10 billion fundraising forms part of Alphabet’s broader $80 billion share offering. The tech giant intends to deploy all proceeds into expanding global AI computing infrastructure and scaling capacity, fueling its Gemini large language model and Google Cloud to satisfy surging enterprise AI demand. Thanks to its end-to-end AI ecosystem, Alphabet’s market value has climbed to $4.5 trillion so far this year, outpacing Nvidia’s yearly gains. Its market cap briefly overtook Apple and Microsoft to secure the rank of the world’s second-largest public company earlier this year.
Google Cloud stands as Alphabet’s primary growth driver anchored in AI transformation. Its latest quarterly cloud revenue jumped 63% year-over-year to $20 billion, while sequential backlog nearly doubled to $462 billion, with around half of the pending orders set to convert into revenue within the next two years. The firm is also commercializing its proprietary TPU chips to unlock fresh revenue streams, with robust cross-business AI progress serving as Berkshire’s core rationale for the massive investment.
The landmark deal signals a notable shift in Berkshire’s capital allocation strategy helmed by Greg Abel, Warren Buffett’s designated successor. Historically inclined toward mature businesses with predictable earnings, Berkshire is now tapping its roughly $400 billion cash reserve to ramp up exposure to leading technology names. One day prior to finalizing the Alphabet investment, Berkshire announced a $6.8 billion all-cash takeover of homebuilder Taylor Morrison Home, balancing real estate acquisitions with high-conviction AI investments.
Trading at a forward price-earnings multiple of 26 times, Alphabet’s valuation has eased down from 30 times seen late last year yet edged up from roughly 20 times a few months earlier. Analysts note the reasonable valuation, paired with proven AI commercialization, makes the stock attractive for both conservative and growth-focused long-term investors. While Nvidia retains global market cap leadership on the back of its dominant AI chip franchise, Alphabet’s integrated layout spanning search, cloud and in-house generative AI delivers superior annual stock performance.
Market watchers highlight Berkshire’s $10 billion commitment reflects an ongoing capital rotation within the AI sector: institutional funds are broadening bets beyond pure-play chip giant Nvidia toward vertically integrated AI leaders such as Alphabet, as value across the full AI industrial chain keeps materializing.
