[DigitalToday reporter Jinju Hong (홍진주)] Berkshire Hathaway is increasing its investment in Alphabet, betting on growth in the artificial intelligence (AI) industry. It is raising its stake in Alphabet, an AI technology company, while also aiming for gains from power infrastructure businesses as data centre electricity demand rises.

On Sept. 2 local time, blockchain media outlet Cryptopolitan reported that Greg Abel, Berkshire Hathaway's chief executive officer, described the rationale for the recent additional purchases, calling Alphabet an important player in AI.

As of end-June, Berkshire held about 106 million Alphabet shares. The stake was valued at about $37.8 billion at the time, making it Berkshire's third-largest holding after Apple and American Express.

Abel gave two reasons Berkshire invested in Alphabet. First, Alphabet, which owns Google, can benefit from the spread of AI. Second, Berkshire Hathaway Energy can gain indirectly from the expansion of AI infrastructure by supplying electricity to data centres.

The latest increase in investment is also linked to additional purchases made about three months earlier. Abel said he and Warren Buffett (워런 버핏) approved a decision to buy an additional about $10 billion worth of Alphabet shares. He said his assessment of Alphabet led to the investment decision. The purchases were executed when Alphabet shares were trading about 6.5 percent lower than they are now.

Berkshire's investment in Alphabet was first led by Buffett. Buffett first bought Alphabet shares in the third quarter of 2025. In a July interview with Fortune, he confirmed that the initial investment call was his decision. He said the recent additional purchases were carried out under Abel's responsibility, and that Abel's execution also goes through his approval.

Buffett's view of Alphabet has also changed. In a July interview with CNBC, Buffett gave an assessment suggesting Google is more likely to be a winner in the AI competition. He said investment views on Alphabet shifted as big technology companies began pouring huge sums into data centres and semiconductors.

Buffett also pointed to the burden that the AI investment race could bring. He viewed hyperscalers as continuing to raise AI-related spending as they keep an eye on competitors. Alphabet is also almost doubling AI-related spending to about $185 billion, and Buffett described that level as a figure that would keep Sundar Pichai (순다르 피차이), Alphabet's CEO, up at night.

Another pillar of Berkshire's view of the AI industry is its power business. Abel estimated that last year in Iowa, a key base for Berkshire Hathaway Energy, data centre customers accounted for about 8 percent of total electricity demand.

In its U.S. business, Berkshire Hathaway Energy currently has 32,400 megawatts of net generation capacity in operation or under construction. Its power sources are also diversified, including wind, gas, coal, solar, hydropower, nuclear and geothermal energy.

Berkshire is also increasing energy infrastructure investment to respond to rising electricity demand as data centres expand. Berkshire Hathaway Energy plans to spend about $33.5 billion by 2026 to expand generation, storage and transmission. As more AI data centres are built, the importance of stable power supply and transmission networks grows, and Berkshire is seeking indirect benefits from AI industry growth through related investment.

Abel, however, set conditions for power deals with data centre operators. He said contracts to supply electricity to data centres must not push up rates for other power customers, and that overall electricity rates should fall if possible.

The Alphabet investment is also meaningful in terms of managing Berkshire's large cash pile. As of June 30, Berkshire's cash and cash equivalents stood at about $364.7 billion. The $37.8 billion Alphabet stake accounted for about 10.4 percent of Berkshire's cash and cash equivalents.

Ultimately, Berkshire is not viewing the AI industry simply as a target for investment in technology companies. It is pursuing a strategy of investing directly in AI technology growth by increasing its Alphabet stake, while also securing indirect benefits through its energy business that provides the power and infrastructure needed for data centre expansion.

As the AI race spreads beyond technology companies to infrastructure industries including data centres, semiconductors and power grids, Berkshire's Alphabet investment is drawing attention as a strategy targeting both technology and electricity in the AI industry's growth process.