Alphabet Inc Class CAlphabet's massive AI capex turns free cash flow negative and pauses buybacks.
Berkshire Hathaway has rapidly built a position in Alphabet worth over $21 billion, making it the conglomerate's fifth-largest holding and its first concentrated bet on artificial intelligence. Warren Buffett initiated the stake last year, and under CEO Greg Abel the company added more than $11 billion in the first quarter, followed by an additional $10 billion through a private placement at an average price of about $350 per share. Alphabet now accounts for roughly 8.1% of Berkshire's nearly $359 billion equities portfolio, still far behind Apple at 21.6%. The investment comes as Alphabet plans to spend $200 billion or more on AI infrastructure, a capital outlay that has already turned free cash flow negative and led to a pause in share buybacks.
Alphabet Inc Class CAlphabet's massive AI capex turns free cash flow negative and pauses buybacks.
Apple Inc.
Berkshire Hathaway IncBerkshire builds a $21B stake in Alphabet, a major investment decision.