Warren Buffett Drops a Bombshell: He Was Responsible for Berkshire’s Push Into AI

Quick Read

• Buffett said “I initiated it,” personally claiming Berkshire’s (BRK-B) $10 billion Alphabet (GOOGL) private placement as his idea, not incoming CEO Greg Abel’s.

• Unlike Berkshire’s Apple (AAPL) position built through public markets, the Alphabet deal’s structure signals Buffett sees value as a preferred hyperscaler financing partner.

• Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn’t make the cut. Grab the names FREE today.

Warren Buffett went on CNBC this morning and took personal credit for one of the more surprising moves in Berkshire Hathaway‘s (NYSE:BRK-B) recent history. Speaking with Becky Quick, the 95-year-old chairman said, “I initiated it” when asked about the conglomerate’s expanding stake in Alphabet (NASDAQ:GOOGL), offering his first public explanation of how Google’s parent became one of Berkshire’s largest technology holdings.

The remark resolves the question of whether new CEO Greg Abel or Buffett drove the pivot toward Big Tech, and it comes as Alphabet uses fresh capital, including a roughly $10 billion private placement from Berkshire earlier this year, to fund an AI infrastructure buildout that is straining even the largest hyperscalers’ cash flows.

The “Decider” Dynamic With Greg Abel

Buffett announced he would step down in May of last year and formally handed the reins to Abel at the start of this year. That timing had led many to assume Abel authored the Alphabet position, which Berkshire first disclosed in Q3 2025 and has since expanded.

Buffett described the working arrangement plainly: “I am not doing anything that he doesn’t approve of. He’s not doing anything I don’t approve of. We talk all the time, but he is the decider,” referring to Abel. He also expressed regret over the delay, saying he “made a mistake” by not investing in Alphabet sooner, echoing his long-standing frustration at missing Google’s early rise despite seeing its advertising strength through Geico.

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Even so, Buffett kept his enthusiasm measured. On Alphabet’s place in the portfolio, he said: “I would say that I don’t like it as well as at least four or five other businesses that we own.”

Berkshire’s Q1 2026 8-K, filed with the SEC on May 7, 2026, reported operating earnings of $11.35B and indicated that the company remained a net seller of equities. Berkshire shares trade around $500, up just under 1% year to date.

Why the $10 Billion Alphabet Placement Matters

Alphabet is spending at a pace that reframes the tech capex conversation. Management guided to $175 billion to $185 billion in 2026 capital expenditures, and Q1 2026 capex more than doubled year over year to $35.67 billion. Google Cloud Q1 revenue reached $20.03 billion, up 63% year over year, with backlog nearly doubling quarter over quarter to more than $460 billion.

That backlog is the demand signal Buffett appears to be underwriting. He framed the competitive stakes directly: “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. That’s the game they’re playing now. They weren’t playing that game with computer software.”

Alphabet’s stock has responded to the disclosure and capex trajectory. Shares trade near $342.78, up 8% year-to-date and roughly 86% over the past year. The forward P/E sits around 25.

Berkshire as a Recurring Capital Partner?

The forward question is whether the Alphabet placement is a one-off or a template. Berkshire ended Q1 2026 with a record $380 billion in cash. Hyperscalers are entering a phase in which AI-related capex is outpacing operating cash flow, creating an opportunity for large, patient private capital providers. Buffett’s other Big Tech position, Apple (NASDAQ:AAPL), was built entirely in the public market. The Alphabet deal is structured differently, and the “I initiated it” comment suggests Buffett himself sees value in being a preferred financing partner rather than just a market buyer.

For readers assembling a longer view of the portfolio’s next chapter, our 7 Warren Buffett Stocks to Buy Now briefing walks through which existing Berkshire holdings look most durable alongside the new tech tilt.

What to watch next: whether Berkshire’s next 13F expands the Alphabet position further, whether Abel signals appetite for similar structured deals with other hyperscalers, and how Alphabet’s AI monetization keeps pace with the capex line.

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