The $80 Billion Question: Is Alphabet's AI Strategy Working?
Key Points
Berkshare Hathaway is chipping in $10 billion of the $80 billion that Alphabet is raising.
Money will be used for AI and for a tax bill associated with stock-based compensation.
This will give Alphabet a fortress balance sheet to build more compute.
- 10 stocks we like better than Alphabet ›
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is raising a whopping $80 billion to build AI compute and pay taxes. The funds will come from public markets as well as a surprising investment from Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB). In this video, I go over the details, why Alphabet raised money, and how it puts the company well ahead in the age of AI.
The biggest question may now be: Who can keep up?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
*Stock prices used were end-of-day prices of June 2, 2026. The video was published on June 2, 2026.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $462,983!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,447!*
Now, it’s worth noting Stock Advisor’s total average return is 995% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 2, 2026.
Travis Hoium has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Oracle. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
