After many years away from technology companies, Warren Buffett, nicknamed “Oracle of Omaha”, made a striking move by investing around $31 billion in Alphabet, Google’s parent company. This investment reveals a significant shift in Buffett's view of the sector, as he sees that the artificial intelligence race has imposed a new reality on tech giants, with an increasing need for large investments in data centers, chips, and digital infrastructure.

Buffett revealed that he was the one who made the decision to invest Berkshire Hathaway's $31 billion in Alphabet (Google’s parent company), not his potential successor, Greg Abel. Buffett said that major AI companies have become involved in a race they had no choice but to enter, as competition has turned into spending hundreds of billions on data centers, chips, and advanced technologies.

Buffett explained that what attracted him to Google and its competitors is the change in the nature of spending. These companies are investing in a way similar to sectors he used to invest in like railways and energy, relying on large assets and long-term investments.

The famous investor noted that he made a “mistake” by ignoring Google for years, but today he sees the company has a strong track record that makes it more capable of success than many companies promoted in Wall Street.

Baffert’s comments come at a time when major tech companies are increasing their spending on artificial intelligence. Google is planning significant investments in data centers and infrastructure to maintain its competitiveness in the coming years.

According to a report by Fortune, Alphabet shares rose after Buffett's statements, contributing to an increase in Larry Page’s wealth as Berkshire's stake in the company became one of its largest technology investments.

Alphabet, Google's parent company, saw its shares rise by about 4% on Wednesday. This pushed Larry Page’s wealth, a co-founder of Google, to exceed $300 billion for the second time in history, according to Forbes magazine, before continuing to gain the next day. Berkshire Hathaway currently holds a stake in Alphabet worth around $31 billion after it began boosting its investments in the company during the third quarter of 2025 and accelerated purchases this year by adding about $10 billion to its holdings just last month. Warren Buffett explained that Alphabet has become one of Berkshire’s largest investments, ranking fifth or sixth in the company's portfolio, while his comments on CNBC contributed to an increase in Page’s wealth by around $8 billion.

Buffett believes that today’s artificial intelligence race is not just a technological competition but has become a massive investment battle that will determine the winners of the digital economy in the coming years.