By Tomi Kilgore and Emily Bary
Berkshire Hathaway is buying Alphabet's stock at a discount as part of a newly announced equity offering
Alphabet says it's "investing in a balanced way" to expand its AI efforts.
Shares of Alphabet fell in Monday's after-hours trading, after the cloud and internet giant announced an $80 million equity offering. This sends a message that the company would rather have shareholders fund its ambitious expansion of artificial-intelligence infrastructure than use cash on hand.
The equity raise includes an agreement reached to sell $10 billion worth of stock to Berkshire Hathaway (BRK.B) - half in Class A common shares and half in Class C capital stock - in a private placement. That would increase the number of Alphabet shares Berkshire owns by about 49% to about 86.4 million shares, or 1.3% of the total shares outstanding.
