Warren Buffett Stepped Back From Berkshire Hathaway With a Bang; Its Investment in 1 AI Stock Now Tops $30 Billion

Warren Buffett deployed $30 billion into Alphabet (GOOGL) for Berkshire Hathaway in a late-career mega-bet on artificial intelligence, splitting the investment between $10 billion in newly issued stock and $20 billion in open-market purchases. The Oracle of Omaha publicly acknowledged Berkshire erred by staying on the sidelines for years, finally moving on the strength of Google Search's dominance and the company's AI-driven cloud expansion.

Google Cloud delivered 82% year-over-year growth, positioning Alphabet as a core AI infrastructure play alongside its legacy search revenue. Buffett's timing reflects confidence in the company's dual engine: a cash-generating search monopoly funding aggressive AI capital expenditure. Alphabet currently trades at an enterprise value-to-EBIT ratio of 26, a valuation Buffett views as reasonable given the growth trajectory.

The $30 billion commitment ranks among the largest single-stock allocations in Berkshire's history and signals institutional validation for mega-cap tech names with embedded AI upside. For context, Berkshire rarely discloses rationale for individual positions; Buffett's public admission of regret underscores the conviction behind the entry.