Berkshire Hathaway enters AI with $10B Alphabet $930 million Bending Spoons
Berkshire Hathaway just made a big move into AI, putting $10 billion into Google's parent company Alphabet and $930 million into Bending Spoons, an Italian conglomerate.
But so far, it hasn't paid off: Alphabet's stock has dropped over 24% since June, and Bending Spoons's stock surged after Berkshire added to its initial investment, but the enthusiasm was short-lived.
CEO Greg Abel backs long-term strategy
Even with these bumps, Berkshire isn't changing course.
CEO Greg Abel is sticking to the company's classic long-term strategy, similar to Buffett's 2016 Apple investment, which was derided at the time as being late in the iPhone maker's history, using its massive $365.5 billion cash pile to bet on AI's future.
Investors are also watching for possible share buybacks and are curious about how the company will perform in an upcoming third-quarter earnings report in mid-November.