Warren Buffett Quietly Buys 17.8M Shares in a Tech Behemoth — A Major AI Bet

In a surprising twist in the tech world that has shocked investors worldwide, Warren Buffett, who has long been regarded as averse to high-flying technology stocks, has quietly acquired 17.8 million shares in Alphabet, the parent company of Google.

And this purchase is clearly a giant departure from his traditional investment style and shows an unmistakable bet on the rapidly growing artificial intelligence (AI) sector.

Now, with AI technologies reshaping industries and driving massive capital flows, Buffett's move may well imply a new phase in his investment philosophy, which is one that welcomes tech giants as long-term value plays rather than fleeting growth stories.

How Much Did Warren Buffett Invest in Google's Parent Company

Historically speaking, Buffett and his conglomerate Berkshire Hathaway have reportedly favoured companies with stable cash flows, understandable businesses, and modest valuations, which means not high-flying tech firms.

But according to a regulatory filing in the third quarter of 2025, Berkshire purchased 17,846,142 shares of Alphabet, valued at around $4.3 billion (£3.25 billion approx.). And this is one of Berkshire's most significant and crucial single-stock acquisitions in the past many years, placing Alphabet among its top ten equity holdings by value.

Moreover, this investment is especially shocking given Buffett's track record. As per reports, he was once criticised (by himself and close associates) for missing out on Alphabet when its value was much lower.

As one of them reportedly put it, 'we screwed up' while acknowledging regret for not investing earlier. But 2025 is different: the tech company is no longer just a search engine and ad platform; it has transformed into a major player in AI, cloud computing, and infrastructure, elements now considered essential for future growth.

So by adding Alphabet to Berkshire's portfolio, Buffett appears to recognise that technology has become too central to global economic growth to ignore.

Furthermore, adding Alphabet does not stand alone, as Berkshire already holds substantial positions in other tech-adjacent firms such as Amazon and Apple, both of which also have stakes in AI-led products or services. But the difference this time is the scale and explicit link to AI infrastructure, which signals a shift from accidental tech exposure to a deliberate and conscious strategy to get into AI growth.

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Why Buffett Chose Alphabet And Why Now

Based on the analysis, there are many compelling reasons for Buffet's strategic bet on Alphabet at this moment. Firstly, valuation, because compared with many other AI-heavy tech firms, Alphabet reportedly trades at relatively modest earnings multiples, making it an attractive long-term value option even as it invests heavily in next-generation technologies.

Secondly, Alphabet's fundamentals remain very solid. While the firm continues to benefit from its advertising business, it is also rapidly expanding its cloud and AI infrastructure, both of which are essential components for training, deploying, and scaling large-scale AI models. As more companies rely on cloud-based AI tools, demand for secure, robust, and scalable AI infrastructure is expected to grow rapidly, positioning cloud leaders like Alphabet favourably.

Thirdly, this investment comes as the entire AI-driven market rallies, with 2025 seeing a surge of investor interest in AI and Alphabet's stock appreciating significantly, reflecting confidence in both its current performance and long-term potential.

Finally, there is the context of leadership transition because with Buffett slated to step down as CEO of Berkshire Hathaway by the end of 2025, the firm may be preparing for a new era, one potentially more open to high-tech, high-growth investments.

So, the decision to stake billions in Alphabet may therefore represent not just a financial bet on AI, but also a strategic pivot in Berkshire's future investment direction.