Warren Buffett’s Berkshire Hathaway, under the leadership of the new CEO Greg Abel, reached an agreement with Alphabet to acquire $10 billion worth of Google stock in a direct private placement. The Chairman of Berkshire Hathaway, Warren Buffett publicly praised Greg Abel’s latest deal in a Monday morning segment on CNBC, including his acquisition of Taylor Morrison.

Institutional funds are now going all-in on Google stock as Alphabet is raising $80 billion to fund its AI plans. The company is opening equity offerings in a fundraising drive to fund its AI rollouts. Tech titans are heavily spending to build the roadmap for the next-gen technology. AI infrastructure needed to meet “unprecedented customer demand,” wrote Alphabet in a blog.

The remaining $70 billion is expected to come from $30 billion in underwritten offerings. This is a type of share issuance where a financial institution buys stocks to sell to investors, and in this case it is Google. The remaining $40 billion will come from staggered sales on the open market. “The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” Alphabet said in a statement.

“By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead,” Alphabet wrote. The development indicates that the company is serious about its AI projects and is looking at different ways to fund its ambitions. While they spent $185 billion from their own pocket, they are now fundraising the rest of the amount. Also, Berkshire Hathaway’s new entry in Google could push its stock prospects ahead.

Google Stock and the AI Boom

Google stock rode the AI boom, from a low of $273 in March to a high of $408 in May. That’s a spike of nearly 50% in a short period, generating massive returns to traders. However, the search giant is now retracing in price and opened Tuesday’s trading bell at $372. Also, the bulls are aiming that this deal from Berkshire Hathaway could push it above the $400 mark again.