Berkshire Hathaway to invest $10 billion in Alphabet's $80 billion AI infrastructure raise

On June 2, 2026, Alphabet announced an $80 billion capital raise to accelerate its AI infrastructure buildout and said Berkshire Hathaway will commit $10 billion through a private placement. The infusion provides immediate privately sourced capital for the funding package as Alphabet races to expand computing capacity to meet surging demand.

The financing package consists of the $10 billion private placement from Berkshire, $30 billion in public share offerings and a $40 billion program of phased share sales beginning in the third quarter of 2026. Goldman Sachs, J.P. Morgan and Morgan Stanley are backing the offerings. Alphabet said the proceeds will be used mainly to scale computing capacity for AI, citing "unprecedented customer demand."

Alphabet’s first — quarter 2026 results underpin the case for a major capacity buildout: revenue rose 22 percent to nearly $110 billion, and Google Cloud revenue jumped 63 percent. The company’s cloud order backlog has nearly doubled to over $460 billion, giving management visibility into long-term demand even as questions remain about the profitability of the broader AI ecosystem.

Critics note much of the AI cloud boom has been driven by startups such as OpenAI and Anthropic, which remain unprofitable, raising questions about long-term margin sustainability despite robust order books. Alphabet positioned the financing as the way to bridge near-term capital needs and long-term customer commitments.

Alphabet said the plan funds a multi — year expansion, forecasting capital spending of $180 billion to $190 billion in 2026 with a significant increase planned for 2027. The mix of private and public funding is intended to supply near-term cash for compute scaling while the enlarged cloud backlog and Cloud growth provide the customer commitments that underpin the extended spending program.