How much did Buffett invest in Alphabet and when?

Berkshire invested $30 billion total: $10 billion from a newly issued stock purchase in June at roughly $350 per share, and approximately $20 billion from open-market purchases in late 2025 that Buffett initiated.

Why does Buffett think Alphabet is attractive now?

Buffett cited Google Search as highly attractive and noted that Alphabet's Google Cloud division is growing at an exceptional pace—82% year-over-year last quarter with $24 billion in revenue and $8.8 billion in operating income—despite being a business with little revenue 10 years ago.

What is Alphabet planning to do with the equity offering proceeds?

Alphabet announced $80 billion in equity offerings on June 1, with proceeds earmarked for general corporate purposes including capital expenditures to scale AI infrastructure and global compute, particularly for data centers supporting Google Cloud.

AI Stocks & MarketsYahoo Finance AIAug 2, 2026Aug 3, 2026, 01:01 JST

Warren Buffett invests $30 billion in Alphabet before stepping back

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3 Key Points

What happened
Warren Buffett made Berkshire Hathaway's first major technology bet before retiring from day-to-day operations at year-end 2025, investing $30 billion in Alphabet (Google's parent company)—comprising a $10 billion purchase of newly issued stock in June at roughly $350 per share and approximately $20 billion in open-market purchases in late 2025. This makes Alphabet Berkshire's third- or fourth-largest position.
Why it matters
Buffett told CNBC he had made a mistake keeping Berkshire out of Alphabet for so long, citing the attractiveness of Google Search and Google Cloud—a business growing at 82% year-over-year that reached $24 billion in revenue last quarter with $8.8 billion in operating income. Despite concerns that AI services like ChatGPT might displace Google, the company's core Google Services revenue still grew 15% year-over-year to $94.5 billion, and Alphabet's own AI product Gemini has attracted 950 million monthly active users. The move signals Buffett's confidence in AI infrastructure and cloud computing tailwinds even as he steps back.
What to watch
Alphabet announced $80 billion in equity offerings on June 1, with proceeds earmarked for capital expenditures to scale AI infrastructure and global compute. Buffett's backing of the fundraising lends credibility to the company's massive AI infrastructure spending at a time when Wall Street is watching capital deployment closely. As of the article, Alphabet's enterprise value-to-EBIT ratio is 26, which Buffett apparently views as reasonable for a company sustaining double-digit revenue growth.

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Context & Analysis

Buffett's entry into Alphabet marks a striking departure from Berkshire Hathaway's traditional technology skepticism. The conglomerate built its fortune in insurance, newspapers, and consumer staples like Coca-Cola—industries far removed from cutting-edge tech. Yet Buffett's candid admission to CNBC that excluding Alphabet for so long was a mistake reveals a clear shift in his thinking. The timing—just before his retirement from day-to-day operations at year-end 2025—suggests he wanted to position Berkshire for what he sees as a multi-decade AI and cloud computing tailwind before stepping back.

The investment is anchored not primarily in Google Search (where the business already generates $94.5 billion in quarterly revenue, growing 15% year-over-year) but in Google Cloud's explosive growth. That division reached 82% year-over-year revenue growth and $24 billion in quarterly revenue with $8.8 billion in operating income—a transformation from a business hemorrhaging cash a decade ago. Alphabet's own AI product, Gemini, has already attracted 950 million monthly active users, suggesting the company is holding its own against ChatGPT and Claude despite market fears. Buffett's endorsement of Alphabet's $80 billion equity offering (announced June 1) also carries weight as Wall Street watches capital deployment into AI infrastructure with growing anxiety; Berkshire's participation signals that a disciplined capital allocator sees the spending as justified.

FAQ

How much did Buffett invest in Alphabet and when?: Berkshire invested $30 billion total: $10 billion from a newly issued stock purchase in June at roughly $350 per share, and approximately $20 billion from open-market purchases in late 2025 that Buffett initiated.
Why does Buffett think Alphabet is attractive now?: Buffett cited Google Search as highly attractive and noted that Alphabet's Google Cloud division is growing at an exceptional pace—82% year-over-year last quarter with $24 billion in revenue and $8.8 billion in operating income—despite being a business with little revenue 10 years ago.
What is Alphabet planning to do with the equity offering proceeds?: Alphabet announced $80 billion in equity offerings on June 1, with proceeds earmarked for general corporate purposes including capital expenditures to scale AI infrastructure and global compute, particularly for data centers supporting Google Cloud.

Yahoo Finance AIRead Original Article

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