Berkshire Hathaway Has Plowed Over $21 Billion Into This Artificial Intelligence (AI) Stock Since Warren Buffett Stepped Down

Berkshire Hathaway has significantly increased its stake in Alphabet (Google) since Greg Abel took over as CEO in early 2026, acquiring approximately 65 million shares worth around $21.6 billion. This move more than quadruples Berkshire’s previous position in the company, reflecting confidence in Alphabet’s long-term growth prospects driven by artificial intelligence. Alphabet’s AI-powered features, such as AI Overviews and AI Mode, have transformed Google Search by blending traditional results with AI-generated summaries and chatbot interactions. These innovations have boosted user engagement, leading to record revenue of $60.4 billion in Q1 2026—a 19% increase year-over-year—and four consecutive quarters of accelerating growth. Google Cloud has also seen explosive expansion, generating $20 billion in revenue in Q1 2026, a 63% rise from the prior year, outpacing competitors like Amazon Web Services (28% growth) and Microsoft Azure (40%). The division’s success is fueled by advanced hardware, including its eighth-generation Tensor Processing Units (TPUs), which deliver three times the performance in AI training and 80% better efficiency in inference workloads. The TPUs are so powerful that some AI customers are purchasing them directly for their own data centers, creating a new revenue stream for Alphabet. With a record order backlog, Google Cloud’s growth trajectory appears poised to continue, reinforcing Alphabet’s dominance in AI infrastructure. Berkshire’s strategic investment aligns with Alphabet’s AI-driven momentum, positioning the conglomerate to capitalize on the tech giant’s expanding influence in search, cloud computing, and AI innovation. The move underscores Abel’s focus on high-growth sectors as Berkshire continues its legacy of market-beating returns.