Why Warren Buffett Is Quietly Buying Alphabet (GOOG) — And Why It Matters for the AI Boom

Key Reasons Buffett Is Buying

Berkshire Hathaway quietly acquired roughly 17.8 million shares of Alphabet in Q3 2025 — about $4.3 billion at the time.

Alphabet’s core businesses (Search, YouTube, ads) remain strong — but the recent surge is driven by its push into AI, cloud infrastructure, and generative-AI features (like its Gemini LLM + AI-powered Search).

Its cloud growth accelerated: Google Cloud delivered ~34% year-over-year revenue growth in Q3 2025, showing demand for AI infrastructure is booming.

Despite tech being historically outside Buffett’s comfort zone, Alphabet now offers a mix of stability (ads + cash flow) and high-growth potential (AI/cloud). That aligns more with Berkshire’s value-plus-growth philosophy.

What This Could Mean Long-Term

Alphabet may emerge as a core AI infrastructure play — combining cash-cow legacy business with high-upside AI/cloud exposure.

Buffett’s entry may serve as a stamp of approval to more traditional investors who were wary of tech/AI — potentially unlocking more capital into AI-linked stocks.

Because Alphabet still trades at reasonable valuation (compared with many high-flying AI names), the risk/reward may look attractive for long-term investors.

This shift may signal a broader trend: even value-focused investors are adapting to structural changes in tech and economy, acknowledging that AI/cloud infrastructure are now part of “core business.”

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