Warren Buffett Says He Initiated Berkshire's $31 Billion Alphabet Stake, Voices AI Spending Concerns

Warren Buffett, Chairman and CEO of Berkshire Hathaway, stated that he was the one who initiated the conglomerate's significant investment in Alphabet, clarifying the decision-making process with his designated successor, Greg Abel. In a CNBC interview, Buffett confirmed his role in building the position while emphasizing that Abel is now "the decider" for the company's future.

The Alphabet Investment

Buffett told CNBC's Becky Quick that he personally started the investment in the Google parent company. "I initiated it," he said, adding, "I am not doing anything that he [Abel] doesn't approve of. He's not doing anything I don't approve of. We talk all the time, but he is the decider."

Berkshire Hathaway first reported its stake in Alphabet in the third quarter of 2025 and has since expanded it. The holding is currently valued at approximately $31 billion. The conglomerate also participated in a $10 billion private placement to help fund Alphabet's artificial intelligence infrastructure, according to the report.

Caution on AI Capital Costs

Despite the substantial investment, Buffett expressed some reservations, noting Alphabet is not among his top-tier holdings. "I would say that I don't like it as well as at least four or five other businesses that we own," he commented.

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He pointed to the massive capital expenditures required to compete in the AI sector as a primary concern. "The real question with Google and all of its competitors now, because they're all laying out hundreds of billions, and that's real money," Buffett said. "That's the game they're playing now. They weren't playing that game with computer software."

Unwavering Confidence in Apple

In contrast to his cautious tone on Alphabet, Buffett reiterated his strong conviction in Apple, Berkshire's largest single equity holding. He stated that the company remains one of his favorite stocks, even following the news that CEO Tim Cook is planning to step down.

"I know more about Apple than I knew many years ago," Buffett said, signaling his deep understanding and long-term belief in the business's fundamentals and future prospects.