Berkshire Hathaway's AI-focused investment: Approximately one-fifth of the company's $282 billion portfolio allocated to two artificial intelligence-related stocks, as per Warren Buffett's latest disclosure.

Amazon facilitates a vast array of generative AI tools and services across three distinct layers of its program, catering to various needs. The base layer empowers major clients with complete flexibility to develop their own large language models (LLMs), essential for generative AI. The...

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2025 June 11 . 5:12 AM

3 min read

Amazon's AI offerings span across three layers of their program, catering to various client needs.... — Amazon's AI offerings span across three layers of their program, catering to various client needs. At the base is a fully customizable option for major clients to construct their personal large language models (LLMs), the foundation of generative AI. The middle layer provides semi-custom solutions via the Amazon Bedrock program. Lastly, the top layer offers a range of pre-made AI tools for smaller businesses in need of ready-to-use programs.

Buffet's Berkshire Dumping Apple: AI Worries or Something Else?

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As Warren Buffet readies to kick back that CEO chair at Berkshire Hathaway, the boss-man bequeaths a colossal, multi-faceted portfolio, built during his 57-year tenure. Buffet transformed Berkshire from a threadbare textile mill to a global powerhouse, renowned for its shrewd value investing strategy. Recently, the conglomerate has ventured into tech stocks, zeroing in on AI's soaring potential. Two major wUnderdogs - Apple and Amazon - have stolen the limelight.

Apple

Apple (NASDAQ: AAPL) continues to dominate Berkshire's portfolio, gobbling up a whopping 21.6% of its $282 billion empire. With a $3 trillion market cap, Apple secures the third spot on the podium, going neck-and-neck with Microsoft and Nvidia. Despite a massive sale of over 600 million shares last year, Apple continues to enjoy the blissful company of Berkshire Hathaway.

Buffet having his reservations about Apple's performance in the AI arena has been the talk of the town. Apple is a champ in mobile hardware but has been struggling with the advancement of its AI platform. Reports suggest delays in the development of next-gen Siri and setbacks in the Chinese market have crippled Apple's AI software rollout, paving the way for domestic competitors like Huawei to gallop ahead.

Yet, Apple holds pride of place in Berkshire's portfolio, a testament to Buffet's faith in the firm's future. As AI reshapes the tech field, Apple's deep pockets and global reach might just be the secret ingredients in the recipe for future success.

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Amazon

Unlike Apple, Amazon (NASDAQ: AMZN) takes up a smaller portion of Berkshire's stock portfolio, but don't underestimate its impact. Buffet confessed to not making the initial Amazon purchase, crediting portfolio managers Todd Combs or Ted Weschler for making the investment move. However, Buffet admitted his mistake for not buying Amazon sooner, as the e-commerce titan has demonstrated it's much more than just an online retailer.

Amazon's fortune lies in its cloud computing division, Amazon Web Services (AWS), which sits squarely at the heart of the AI revolution. With a hefty 30% share of the global cloud market, AWS is primed to profit from the burgeoning demand for AI-powered solutions. AWS offers a smorgasbord of AI tools for clients aiming to scale their businesses, from bespoke large language models to off-the-shelf AI programs for small businesses.

CEO Andy Jassy envisions AWS becoming an even more valuable cash cow as the AI trend flourishes, spurring a reliance on cloud-based infrastructure. "Before this AI generation, we thought AWS had the potential to ultimately be a multi-hundred-billion dollar revenue run rate business," Jassy said on a recent earnings call. "We now think it could be even larger."

Amazon's AI strategy is rapidly gaining momentum, making it an intriguing prospect for Berkshire Hathaway once Buffet moves on. AWS already plays a significant role in Amazon's financials, contributing 63% of the company's operating income. With AI's footprint in the market expanding exponentially, Berkshire might just ramp up its stake in Amazon in the future.

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Berkshire Hathaway, under Warren Buffet's management, has delved into tech stocks, specifically AI, indicating a growing interest in the segment.
Apple, despite Buffet's concerns about AI performance, remains a significant component in Berkshire's stock portfolio, owing to its global reach and deep pockets.
Amazon, on the other hand, has a smaller share in Berkshire's portfolio, but its cloud computing division, Amazon Web Services (AWS), is a key player in the AI revolution, with a 30% share of the global cloud market.
The technology sector, particularly AI and finance, offers promising avenues for investment, with AI reshaping the tech field and companies like AWS primed to capitalize on the growing demand for AI-powered solutions.