Berkshire Hathaway Invests $10 Billion in Alphabet

The conglomerate under new CEO Greg Abel has made large AI-linked investments as Alphabet shares trade below Berkshire's purchase price.

Updated on Nov. 6, 2026 in Investing

Berkshire Hathaway Invests $10 Billion in Alphabet

Berkshire Hathaway handed $10 billion to Alphabet Inc. to support its AI-related investments, and separately invested $930 million in Italian conglomerate Bending Spoons SpA. The moves came soon after Greg Abel took over as chief executive of Berkshire Hathaway.

Why it matters

Alphabet's Class A and Class C shares have fallen more than 24% since June and now trade below the price Berkshire paid, putting the new CEO's first major bets under scrutiny. The investments show how Berkshire is deploying a large cash reserve as it returns to buying stock.

Berkshire held a $365.5 billion cash pile at the end of the second quarter and resumed share purchases in the first quarter after a hiatus of more than a year. Alphabet's Class A and Class C shares have fallen more than 24% since June and now trade below Berkshire's purchase price.

The players

Berkshire Hathaway Inc.

A diversified holding company led by Warren Buffett for decades and known for its large stock portfolio and insurance operations.

Greg Abel

Chief Executive Officer of Berkshire Hathaway who took over the role and is now overseeing the company's major investment decisions.

Alphabet Inc.

The parent company of Google that is the largest recipient of Berkshire's recent AI-focused investment.

Bending Spoons SpA

An Italian conglomerate that uses technology to transform businesses and received a $930 million investment from Berkshire.

The details

Berkshire Hathaway started writing checks soon after Greg Abel became chief executive, with the $10 billion Alphabet stake aimed at supporting the company's AI investments. The Bending Spoons investment, made through the Italian conglomerate that uses technology to transform businesses, has also fallen in value over the past three weeks.

Since June: Alphabet's shares began falling and are now down more than 24%.
First quarter: Berkshire resumed share purchases after a hiatus of more than a year.
End of second quarter: Berkshire held a $365.5 billion cash pile.
Saturday: Berkshire is expected to release third-quarter earnings.

Market Dynamics

Berkshire's $365.5 billion cash pile at the end of the second quarter, followed by its return to share purchases in the first quarter after a hiatus of more than a year, signals a shift from holding cash to deploying it. The new AI bets extend that redeployment into one of the most closely watched sectors of the market.

Shareholders of Berkshire and holders of Alphabet stock are watching whether these large bets recover from recent losses. The moves also indicate how one of the largest cash reserves in the market may be redeployed, which could affect share prices for companies Berkshire chooses to back.

The takeaway

Large cash reserves do not guarantee quick gains, as Berkshire's Alphabet stake has already fallen below its purchase price. Investors tracking major holders should watch quarterly filings and earnings calls for clearer signals on how new positions are performing.

What happens next

Berkshire Hathaway is expected to release its third-quarter earnings on Saturday, which may show whether it has added to its positions. Investors will have to wait until mid-November to learn whether Abel will put more money into the AI trade.