Several of the world’s leading investors significantly increased their investments in artificial intelligence during the third quarter, collectively allocating billions of dollars to Alphabet as confidence in the company’s AI strategy grows.
What Happened
Regulatory filings reveal that Berkshire Hathaway, under Warren Buffett’s leadership, established a new multibillion-dollar position in Alphabet during this quarter. This marked the conglomerate’s first recorded investment in Google’s parent company. The stake, valued at approximately $4.3 billion at the time of purchase, signifies a notable shift for Buffett, who has been cautious regarding large technology investments.
Other prominent investors echoed this trend. Philippe Laffont’s technology-focused hedge fund, Coatue Management, dramatically increased its exposure to Alphabet, expanding its position more than threefold. The fund added over five million shares during the quarter, raising its total holdings to over seven million shares, making Alphabet one of its largest portfolio positions.
Stanley Druckenmiller’s Duquesne Family Office also entered the stock for the first time, acquiring just over 100,000 shares. While smaller in scale compared to other investments, this move reflects Druckenmiller’s broader shift toward companies poised to benefit from advancements in artificial intelligence.
Together, the new and expanded positions represent more than $5.5 billion in new capital directed at Alphabet in a single quarter, indicating a growing belief among experienced investors that AI will serve as a significant driver of long-term value.
Why It Matters
Alphabet’s recent financial performance adds context to this confidence. The company reported record revenue for the third quarter of 2025, reaching $102.35 billion, a 16% year-over-year increase. Management attributed much of this growth to the accelerating adoption of AI-powered features across its products.
Recent initiatives include the global rollout of AI-generated search summaries, the launch of an upgraded Gemini model with enhanced reasoning and multimodal capabilities, and the continued expansion of AI infrastructure within Google Cloud. These developments position Alphabet as a key beneficiary of the increasing demand for artificial intelligence tools among enterprises and consumers.
The combination of record revenues and substantial institutional buying suggests that some of the market’s most seasoned investors view Alphabet not just as a legacy technology firm, but as a long-term leader in the next phase of AI-driven growth.
—
