Warren Buffett has resigned as CEO Berkshire Hathaway(NYSE: BRK.A)(NYSE: BRK.B) By the end of 2025. But for now, any portfolio transaction takes place without his blessings. That’s what makes Berkshire’s recent trades so interesting. According to a recent filing, Berkshire acquired just 17,846,142 shares of the popular artificial intelligence (AI) stock — a category Buffett has long avoided.
After the purchase, Berkshire owns $4.3 billion of this AI company, pushing it into the top 10 holdings by value. Why is Buffett suddenly going into artificial intelligence? There is more to this story than you might expect.
Historically, Buffett has not been a big fan of tech stocks. But in recent years, tech stocks have been his biggest holdings.
Check out Berkshire’s top ranking now: Apple. That position alone is currently over $60 billion. But in the past, this holding was more than $200 billion! A number of sales reduced the position’s weighting significantly, but Apple remains Berkshire’s biggest bet. Apple is not a stand-alone AI company. But the company has spent billions of dollars on AI research and development, rolling out several new AI tools to customers in 2025 alone.
Apple isn’t the only company in Berkshire’s portfolio involved in AI. As of the first quarter of 2019, Berkshire also owns a billion dollars. Amazon. Most people know Amazon as an e-commerce platform, but most of its operating profits are actually generated by its cloud infrastructure business, Amazon Web Services (AWS). As the world’s largest cloud provider, AWS is heavily used by AI companies to train and run complex AI models.
Here’s the catch. Buffett may not be responsible for these purchases, although he apparently approved them. According to most reports, the Apple purchase — which quickly became the biggest bet in Berkshire’s history — was actually initiated by two of Buffett’s lieutenants: Todd Combs and Ted Wessler. The pair were also responsible for Berkshire’s purchase of Amazon stock. “Yes, I’ve been a fan, and I’ve been a fool for not buying,” Buffett said after Combs and Weissler finally convinced him to buy Amazon shares.
There’s a strong chance that Combs and Wessler are also behind Berkshire’s latest purchase: Alphabet(NASDAQ: GOOG)(NASDAQ: GOOGL )Google’s parent company.
Image source: Berkshire Hathaway.
Berkshire now owns 17,846,142 shares of Google’s parent company Alphabet stock, according to a recent SEC filing. This position was never announced in previous filings, strongly suggesting that Berkshire purchased all of its shares in the third quarter of 2025.
As with Berkshire’s Apple and Amazon positions, we don’t know who initiated the purchase. A recent Reuters report concluded, “It’s unclear whether Buffett, his portfolio managers Todd Combs and Ted Wessler, or CEO-elect Greg Abel make specific purchases, although Buffett generally makes large investments.”
I Buffett was at least partially involved. In the past, he and former partner Charlie Munger have complained about not buying Alphabet shares earlier. “We screwed up,” Munger once revealed. Buffett added, “He said we blew it.
While Google still makes a lot of money from its search engine and advertising businesses, the company is also a major player in the cloud computing industry. Many estimates peg it as the world’s third-largest cloud provider, with a market share of 10% to 15%. Like Amazon’s AWS division, Alphabet’s cloud business is heavily used by AI developers and applications.
With this purchase, Berkshire now has three companies with direct ties to AI. Buffett — or, more likely, his investment partners at Berkshire — seem increasingly bullish about AI’s potential.
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Ryan Bhanzo has no position in any of the stocks mentioned. The Motley Fool has and recommends positions in Alphabet, Amazon, Apple, and Berkshire Hathaway. Motley Fool has a disclosure policy.
Warren Buffett Bets Big on AI – He Just Bought 17,846,142 Shares of This Legendary Tech Stock Originally Posted by The Motley Fool
