Warren Buffet is known to be a conservative investor who doesn’t take too many speculative bets, but he’s now finally waded into the AI space.
Warren Buffett’s Berkshire Hathaway has purchased a significant amount of Google stock. As per regulatory filings, Berkshire purchased 17.85 million shares of Google parent Alphabet, a stake valued at $4.9 billion as of Friday’s market close. The investment makes Google around 1.6 percent of Berkshire’s portfolio. Berkshire simultaneously trimmed its stakes in Apple and Bank of America in the quarter.
Google’s shares have had a strong 6 months. They were languishing at $165 per share in May, but slowly rose to around $200 per share. At that point, Google got a favourable decision from the US courts which meant it didn’t have to divest its Chrome browser, and its shares spiked. Following that, Google has made some big moves in AI. Initially it was seen to be lagging OpenAI, but came up with its Gemini 2.5 Pro model and an image editing model in Nano Banana. Nano Banana, in particular, went viral, and helped Gemini gain ground against ChatGPT amongst Gen AI tools. This resurgence in the AI space, along with strong quarterly results, had pushed Google’s shares to $290 levels, a 90% increase in 6 months.
And all this progress seems to have caught the attention of Warren Buffett’s Berkshire Hathaway. Buffett famously invests in strong businesses that he understands, and he seems to believe that Google could be a big winner in the AI age. Berkshire Hathaway had sat out of most of the AI revolution, choosing to keep over $350 billion in cash. But Google now seems to have some of the best AI models, also has some of the world’s best distribution to push them to users. Google also controls it, including its own chips, models, and consumer products. And all this progress seems to have prompted Berkshire to have the conviction to back a tech company in a time of great change in the space.