Buffett Says He Drove Berkshire's Alphabet Bet, Expanding a Top Holding Since 2025
Updated
Updated · CNBC · Jul 15
Buffett Says He Drove Berkshire's Alphabet Bet, Expanding a Top Holding Since 2025
3 articles · Updated · CNBC · Jul 15
Summary
Warren Buffett said he—not new Berkshire CEO Greg Abel—initiated the conglomerate’s major Alphabet investment, giving his first public account of how Google’s parent became one of Berkshire’s biggest tech holdings.
Buffett said the move fit his long-held focus on businesses that can earn high returns on capital for extended periods, while also reflecting regret that he had earlier missed investing in Google.
Berkshire first disclosed the Alphabet stake in the third quarter of 2025, has since increased it, and earlier this year joined a $10 billion private placement to help fund Alphabet’s AI infrastructure.
The 95-year-old investor said Abel is still the final decision-maker after taking over as CEO at the start of 2026, even though the two remain closely aligned on investments.
Buffett added that Alphabet is not among Berkshire’s very favorite businesses, pointing to rivals’ need to spend hundreds of billions on AI, while reiterating that Apple remains a preferred holding.
Why did Buffett back the Alphabet investment despite his deep concerns over its massive AI spending?
Is new CEO Greg Abel's portfolio shake-up the end of Berkshire's traditional investment philosophy?
Berkshire’s $10 Billion Private Placement in Alphabet: A Strategic Pivot to AI Under Greg Abel
Overview
In June 2026, Berkshire Hathaway made a major $10 billion private placement in Alphabet, deepening their strategic relationship as Alphabet raised $80–85 billion to fund its aggressive expansion in artificial intelligence infrastructure. This investment highlights Berkshire’s growing confidence in Alphabet’s AI ambitions and marks a significant shift in its portfolio strategy under new leadership. As Alphabet ramps up capital spending to $180–190 billion for AI in 2026, Berkshire’s move signals a new openness to technology investments, reflecting both the opportunities and risks of a more tech-focused approach for the future.