Berkshire Targets AI With $36 Billion Alphabet Bet as Abel Sees Data-Center Power Demand
Updated
Updated · CNBC · Sep 5
Berkshire Targets AI With $36 Billion Alphabet Bet as Abel Sees Data-Center Power Demand
1 articles · Updated · CNBC · Sep 5
Summary
$36 billion in Alphabet shares and a push to supply electricity to AI data centers form Berkshire Hathaway’s two main AI plays, CEO Greg Abel said in a CNBC interview.
Abel said Berkshire sees power as the main bottleneck for AI buildout and will serve hyperscalers only if new demand does not raise rates for existing utility customers.
$10 billion of the Alphabet stake came in a spring block purchase directly from Google’s parent at a 6.5% discount, after Buffett and Abel agreed to expand Berkshire’s position.
Community resistance is emerging as another constraint: Abel said developers must address water use and local concerns, though Berkshire has not yet seen any of its related energy sites rejected.
From Japan, Abel also said Berkshire plans to keep issuing yen bonds for investments, hold its stakes in five trading houses for decades, and expects no quick U.S. housing recovery despite long-term confidence in Taylor Morrison.