Berkshire Hathaway: Abel Commits $10 Billion to Alphabet's $80 Billion Capital Raise

Key Morningstar Metrics for Berkshire Hathaway

• Fair Value Estimate
  : USD 510
• Morningstar Rating
  : ★★★★
• Morningstar Economic Moat Rating
  : Narrow
• Morningstar Uncertainty Rating
  : Low

Alphabet announced on June 1, 2026, that it plans to raise USD 80 billion through equity offerings to fund an expansion of its AI infrastructure, with Berkshire Hathaway BRK.B agreeing to invest USD 10 billion as part of the funding initiative.

Why it matters: This marks CEO Greg Abel’s second big outlay of cash since taking the helm, having just announced a deal to acquire homebuilder Taylor Morrison Home Corporation for close to USD 6.8 billion in an all-cash transaction at the end of May 2026.

• Alphabet has reached an agreement to sell USD 5 billion of its Class A shares to Berkshire at USD 351.81 per share and another USD 5 billion of its Class C stock at USD 348.20 per share. This would increase Berkshire’s stake in Alphabet’s Class A shares by 400% and its holdings in the Class C shares by 26%.
• Once the fundraising is done Berkshire would still hold less than 1% of Alphabet’s outstanding shares. The move would, however, increase Alphabet’s holding to 9.5% of Berkshire’s portfolio (valued at USD 341.5 billion with the added stakes in Alphabet), up from 5.3% at the end of the first quarter (when the stock investment portfolio was worth USD 312.6 billion).
• The big bet on Alphabet’s AI buildout is a marked shift for Berkshire, which has traditionally favored businesses with more-predictable economics, noting that Buffett had rationalized the insurer’s big stake in Apple over the years by looking at it as a consumer products firm as opposed to a technology company.

The bottom line: We are leaving our USD 765,000 (USD 510) per Class A (B) share fair value estimate for Berkshire’s in place for the time being, but will update our valuation if it changes meaningfully after adding the increased stake in Alphabet, as well as our integration of Taylor Morrison Home into the manufacturing, service, and retailing segment, in our valuation model.