Berkshire Hathaway bets $112 billion on Apple and Alphabet AI strategies

Berkshire Hathaway has allocated 30.6 per cent of its investment portfolio, valued at more than $112 billion, to two artificial intelligence stocks: Apple and Alphabet. This concentration represents a notable strategic focus for the conglomerate, which has traditionally been known for holding stable, blue-chip companies in sectors such as insurance, railroads, and consumer goods. The allocation underscores the firm's growing exposure to the AI sector through two distinct technological approaches.

Apple remains Berkshire’s largest single holding, accounting for 20.7 per cent of the portfolio. The conglomerate has held Apple stock since 2016, initially valuing the company’s ecosystem and consumer loyalty rather than its AI capabilities. While Berkshire has reduced its position from 914.5 million shares in 2023 to just under 228 million shares today, the stake remains substantial. Apple’s AI strategy focuses on on-device processing to protect user privacy, a method distinct from competitors that rely heavily on large data centres.

Alphabet, a newer position for Berkshire, constitutes 10.1 per cent of the portfolio and is the company’s third-largest holding. Berkshire first purchased 17.86 million shares of Alphabet for $5.18 billion in the third quarter of 2025. Under the leadership of Greg Abel, who became CEO this year following Warren Buffett’s 60-year tenure, the firm bought an additional 36.4 million shares in the first quarter of 2026.

The investment in Alphabet intensified further as the company participated in an $80 billion capital raise designed to fund AI infrastructure. Berkshire invested a further $17 billion in Alphabet stock, including $10 billion in a private placement. The conglomerate currently holds 78.79 million shares of Alphabet Class A stock and 27.18 million shares of Class C stock.

Alphabet’s multifaceted AI strategy involves integrating its Gemini assistant across its product suite, including Google Search, Android, and Workspace. The company’s Google Cloud division, the third-largest cloud computing provider globally, generated $24.8 billion in revenue in the second quarter, an 81 per cent year-on-year increase. This growth highlights the commercial momentum behind Alphabet’s AI initiatives.

For investors, the shift signals a willingness by one of the world’s most conservative investment houses to embrace AI-driven growth. By combining Apple’s privacy-focused on-device intelligence with Alphabet’s broad cloud and advertising integration, Berkshire maintains a diversified yet concentrated bet on the future of artificial intelligence.