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Berkshire boosts Alphabet stake as AI buildout spending rises
Berkshire increased its Alphabet stake 83% in the second quarter to nearly 106 million shares, and Alphabet said proceeds from a $10 billion private placement would fund AI-capacity scaling.
Berkshire Hathaway increased its stake in Alphabet, buying shares that pushed its Alphabet holding 83% higher during the second quarter to nearly 106 million shares valued at about $37.8 billion, according to a Yahoo Finance analysis of the disclosure made on August 14.
The Alphabet stake also reflects a $10 billion private placement completed on June 4, with Alphabet stating the proceeds would support general corporate purposes including capital expenditures to scale AI infrastructure and global compute. The update also positions Alphabet as Berkshire’s third-largest stock holding, behind only Apple and American Express.
Operationally, Alphabet reported second-quarter revenue growth of 24% to $119.8 billion, with Google Cloud revenue up 82% to $24.8 billion. Yahoo Finance notes that Cloud operating income more than tripled to $8.8 billion and that Search revenue rose 17%, suggesting AI features have not yet dented advertising momentum.
The article highlights the cost side of the AI push, pointing to Alphabet’s capital-spending forecast raised to $195 billion to $205 billion for 2026 and to Reuters reporting Alphabet burned $5.9 billion of cash in the second quarter, its first quarterly cash burn on record. It frames the investment as a bet on AI growth balanced against the possibility that scaling requirements could pressure free cash flow over time.