Berkshire Hathaway is positioning itself to capture value from the artificial intelligence expansion through a dual strategy focused on utility infrastructure and targeted stock investments, Chief Executive Officer Greg Abel revealed in a recent interview with CNBC.
Speaking from Tokyo, Abel outlined how the conglomerate intends to leverage its utility arm, Berkshire Hathaway Energy, alongside its expanding multi-billion-dollar stake in Google parent Alphabet.
Powering Next-Generation Data Centers
As tech hyperscalers construct energy-intensive computing facilities, Abel highlighted power availability as a primary bottleneck for AI development. Berkshire Hathaway Energy sees a major opportunity in supplying power to these facilities, provided commercial agreements do not drive up electricity rates for existing residential and business customers.
At the same time, Abel acknowledged growing community resistance to data center construction across the United States. He urged developers to address local concerns directly by adopting water-conserving technologies and demonstrating tangible civic benefits, such as the substantial tax revenues provided to local municipalities and public services.
A Multi-Billion-Dollar Equity Bet on Alphabet
Berkshire’s second route to AI exposure is its equity position in Alphabet, which has now grown to roughly $36 billion. Abel noted that he and Warren Buffett recognized early on that AI would profoundly reshape the business landscape, identifying Google as a central player in that transformation.
During the spring, Berkshire executed a direct $10 billion stock purchase from Alphabet at a 6.5% discount. The allocation took place as Alphabet raised $80 billion to fund investments in its computing and AI infrastructure.
Expanding Long-Term Commitments in Japan
Abel’s interview coincided with a business trip to Japan, where he visited Berkshire-owned toolmaker Tungaloy and met with leaders from five major trading houses—Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp. Berkshire holds positions exceeding 10% in each firm and intends to maintain them for decades.
Despite Japanese 10-year bond yields rising to 3%—their highest level in three decades—Abel dismissed concerns that borrowing costs would derail growth. He confirmed that Berkshire will continue issuing yen-denominated debt as needed to finance future investments across the region.