A major redesign is unfolding in the market: technology companies are evolving into AI Utilities, the same way households depend on electricity, water, and fixed-line telephony. Just as you move into a neighborhood and have limited options for these essential utilities, the world is arriving at a point where a few entities will power the backbone of AI across industries.
Yes, from traditional utilities that deliver electricity, water, and phone services, we are now witnessing the rise of utilities that will power intelligence itself. Among the global contenders, Google’s Alphabet stands prominently.
Warren Buffett has just validated this shift with his signature: his chequebook. As Reuters noted, filings released on Friday show that Berkshire Hathaway acquired 17.85 million Alphabet shares, valued at $4.93 billion based on the previous session’s close. This marks one of the final major portfolio entries under Buffett before Greg Abel takes over in 2026. More striking is that it breaks from Berkshire’s long-standing hesitancy toward high-growth tech companies. Before now, Apple was the only major exception, and Buffett embraced it largely because he saw Apple as a consumer company, not a technology bet.
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The market’s reaction was swift. Alphabet was on track to gain roughly $180 billion in market value if the rally held through close, underscoring how powerful Berkshire’s endorsement remains. Alphabet also became one of the top-three trending names on Stocktwits as retail traders piled in.
The backing arrives at a moment when enthusiasm around artificial intelligence has started to cool. Business leaders and analysts have raised concerns about lofty valuations across tech, arguing that share prices have run ahead of earnings and that the timeline for returns on enormous data-center spending is still uncertain. The Roundhill Magnificent 7 ETF, which tracks giants such as Nvidia, Microsoft, and Alphabet, has been mostly flat since September after outperforming the broader market for much of the year.
But Alphabet is different. Companies like Alphabet possess a fortress moat, built not only on technology but also on deep, interlocking partnership nodes. It is difficult, nearly impossible, to replicate the breadth, depth, and integration of Alphabet’s ecosystem in short-term by any competitor.
And that is why even if the broader AI sector enters a bubble, Alphabet will endure. Its tentacles run too wide, too deep, and too strategically across the modern digital economy. Mr. Buffett understands that and has joined the party and Alphabet stock position is hitting new highs because when the Oracle of Omaha anoints, everyone pays attention.
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