Berkshire Is Making a Big Bet on Google. This Is Why, According to CEO Greg Abel

Berkshire Is Making a Big Bet on Google. This Is Why, According to CEO Greg Abel

Thu, September 3, 2026 at 12:03 AM GMT+3 2 min read

• BRK-B +0.57%
• GOOG +1.59%

Key Takeaways

• Berkshire Hathaway CEO Greg Abel told CNBC in an interview Wednesday that Alphabet's strength in AI was a "fundamental" reason behind the decision to invest in the tech giant.

• Legendary investor Warren Buffett, who stepped down from his role as Berkshire's CEO at the end of last year, initiated the investment.

Google's position as a "significant player" in AI was a "fundamental" reason behind Berkshire Hathaway's decision to invest in the tech giant, according to CEO Greg Abel.

"We knew it was going to have a significant impact on America and businesses" by watching how the spread of AI is influencing Berkshire's subsidiaries, the CEO said in a televised interview with CNBC Wednesday.

The conglomerate's stake in Google parent Alphabet (GOOGL, GOOG), which was initiated by legendary investor Warren Buffett, is the third-largest holding in Berkshire's (BRK.A, BRK.B) portfolio. Berkshire first revealed its stake last November, when Buffett was in his final months as CEO. Abel took over the role at the start of the year.

Abel said he was approached earlier this year about participating in the Google parent's $80 billion stock offering to raise funds for its AI buildout, and settled on investing another $10 billion. Berkshire has grown its stake to about 106 million shares as of the end of the second quarter, according to a regulatory filing last month. At Wednesday's closing prices, the investment would be worth about $35.64 billion.

Alphabet and Berkshire shares climbed less than 1% Wednesday on a broadly positive day for markets. Alphabet shares are up about 8% for the year, but well off their May highs. Berkshire shares have added just 0.5% in 2026 so far, having pulled back in the wake of the company's earnings report last month.

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