Berkshire Hathaway purchases $17 billion in Alphabet shares and commits to $10 billion more, marking a strategic shift into tech investing.
Berkshire Hathaway has acquired nearly $17 billion in Alphabet shares over the past three quarters, with plans to invest an additional $10 billion through a private placement. The move is part of Alphabet’s $80 billion offering to fund data center construction, positioning Alphabet as Berkshire’s fourth-largest equity holding.
Under former CEO Warren Buffett, Berkshire avoided most tech investments due to perceived unpredictability and rapid disruption. The firm’s only prior tech bets—IBM and Apple—yielded mixed results, with Apple viewed more as a consumer goods company. New CEO Greg Abel is driving this shift, signaling a broader pivot toward tech.
The investment reflects confidence in Alphabet’s long-term growth, particularly in cloud computing and AI infrastructure. Berkshire’s stake underscores a departure from its traditional value-investing approach, embracing sectors previously deemed too volatile.