While analysts debate whether AI is a bubble or not, legendary investor Warren Buffett's Berkshire Hathaway just deepened its bets on the nascent technology. Google's parent, Alphabet, on Monday announced that it will sell $10 billion worth of shares to Berkshire in a private placement.This will be part of Alphabet’s $80 billion fundraising. Berkshire Hathaway’s stake purchase will comprise $5 billion in Class A common stock at $351.81 per share and $5 billion in Class C capital stock for $348.20 per share, both below Monday's closing prices.This comes after Berkshire in May said that it had more than tripled its stake in the Google parent, which at $16.6 billion has become one of its largest common stock investments. With the latest investment, Alphabet is expected to become one of Berkshire's five largest equity holdings, alongside long-time investments such as Apple.Along with the $10 billion from Berkshire Hathaway, Alphabet also aims to raise $30 billion through concurrent public offerings backed by investment banks, as well as launch a $40 billion at-the-market offering program in the third quarter. "The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels exceeding the company's available supply," Alphabet said.Also read: Alphabet stock price jumps as Google parent plans $80 billion fundraising for AI expansionNotably, this comes after Berkshire said that it held cash and short-term investments worth $380.2 billion as of March 31, raising worries. Since reaching a record high in May 2025, Berkshire Hathaway shares have declined about 13%, while the technology-focused S&P 500 index has gained roughly 34% during the same period.Berkshire’s latest investments come as Warren Buffett gradually hands over the baton to his successor, Greg Abel. Earlier in May, Buffett told CNBC that it is not the ideal environment to invest Berkshire’s record cash hoard. Several market analysts explained that the rationale behind this move may be expectations of a sharper crash ahead."This additional purchase underscores that Greg Abel (Berkshire CEO) believes that Alphabet will earn a reasonable return on its AI capex spending even with the firm issuing additional shares," Reuters quoted Bill Stone, chief investment officer at Glenview Trust Company, as saying.This comes as the AI boom, coupled with the ongoing Iran-US war, has led to a major reshuffling of the global stock market hierarchy, with South Korea and Taiwan overtaking several long-established Western exchanges.South Korea’s equity market has now overtaken that of India as the world’s sixth-largest, driven by a relentless surge in chip giants powering the global artificial intelligence buildout.Also read: Berkshire's $16.8 billion bets signal Greg Abel's new direction at the helm(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)