Berkshire Hathaway CEO Greg Abel discusses $10 billion investment in Alphabet
Abel highlights Google's role in artificial intelligence and details the transaction process
Quick Look
- Berkshire Hathaway CEO Greg Abel confirmed a $10 billion investment in Alphabet, citing Google's strength in artificial intelligence.
- Abel noted the firm's internal visibility into AI benefits influenced the decision to acquire the stake at a 6.5% discount.
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Why It Matters
Berkshire Hathaway is a conglomerate led by Warren Buffett and Greg Abel. The company maintains a diverse portfolio of businesses that utilize AI technology.
Berkshire Hathaway CEO Greg Abel discussed with CNBC's Becky Quick on Wednesday the conglomerate's massive investment in Google-parent Alphabet , calling the tech giant a "significant player" in artificial intelligence.
Abel said that Berkshire has clear view of the impacts that AI is having across its portfolio of companies and that Google's position relative to the emerging technology is strong.
"We have a lot of visibility from within our companies as to how we're using AI, what type of benefits it's delivering, so that brought incremental interest, and then we saw Google as a significant player," he told Quick.
Berkshire took a $10 billion stake in Google 15 months ago at a 6.5% discount, Abel said.
"They hadn't set the size, but recommended that we consider 10 billion. And Warren and I discussed the size. We discussed the size of discount, and I'd recommended six-and-a-half percent discount, and we were comfortable with that," Abel said. "Then ultimately consummated the transaction."
Open Questions
- What is the current performance of the $10 billion stake?
- Will Berkshire increase its position in Alphabet?
