Berkshire Hathaway increases Alphabet stake to $12.5 billion

Greg Abel told a TV interview that Warren Buffett has stepped down as Berkshire Hathaway CEO and is now a board member, and that the investment firm has bought a significant stake in Alphabet, the parent company of Google, as part of its strategy to bet on artificial intelligence.

Buffett announced his retirement in 2022 after five decades at the helm. He said he would focus on philanthropy and board duties, leaving day‑to‑day management to longtime executive Greg Abel. In his new role, Buffett is turning his eye toward AI, a sector that has become a growth engine for many tech giants. Alphabet has been a top AI player with products like Bard, Gemini, and cloud AI services, making it a natural fit for Buffett’s long‑term value‑investment philosophy.

Berkshire’s stake is valued at about $12.5 billion, giving it the largest single ownership position in Alphabet. The firm owns roughly 2.3 % of the company, which has a market cap of over $1.5 trillion. The investment comes as other major funds, such as BlackRock and Fidelity, have also increased their exposure to AI. Market analysts say Buffett’s bet signals confidence in AI’s future and could influence how Alphabet prioritizes its AI roadmap.

Berkshire will likely hold Alphabet shares for the long term, using its voting power to shape company strategy. The stake may affect Alphabet’s governance and could influence the company’s AI roadmap, especially as regulatory scrutiny intensifies. For Berkshire, the move diversifies its portfolio beyond traditional sectors and signals a broader shift toward technology‑driven growth. Investors will watch how the investment performs as AI technology advances and as Alphabet’s products evolve.