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Buffett's Unexpected Investment in Tech Drives Alphabet's AI Boom

Buffett's Unexpected Investment in Tech Drives Alphabet's AI Boom

Bitget-RWA2025/11/19 22:40
By:Bitget-RWA

- Berkshire Hathaway's $4.3B Alphabet investment drove a 5% stock surge, marking Buffett's rare tech bet. - Alphabet's Gemini 3 AI model improves complex query accuracy and integrates into search/cloud products. - Analysts praise Gemini 3 as a "state-of-the-art" advancement closing AI performance gaps with rivals. - The model's commercial deployment and Buffett's backing position Alphabet as a key AI industry player.

Shares of Alphabet Inc.

during Monday's early session after Berkshire Hathaway, led by Warren Buffett, revealed a $4.3 billion investment in Google's parent company. This marks one of Berkshire's largest forays into the tech sector in recent years. The surge in Alphabet's stock price follows the company's introduction of newest artificial intelligence system, , which industry experts have described as a cutting-edge leap in AI technology. Building on the foundation of , Gemini 2.5, this latest model is engineered to provide more precise answers to intricate questions with less need for detailed prompts.

Analysts from D.A. Davidson have commended the integration of Gemini 3 into Google's search, the Gemini app, and business services, calling it a "truly robust model" and

to "significantly advance the field" in select domains. Similarly, Bank of America Securities analysts a "notable advancement" for Alphabet in narrowing the "perceived LLM performance gap" with competitors such as OpenAI and Anthropic. The launch of Gemini 3 in artificial intelligence, with OpenAI's GPT-5 and Anthropic's Sonnet 4.5 currently leading the market.
Buffett's Unexpected Investment in Tech Drives Alphabet's AI Boom image 0

, disclosed through a regulatory document, has further fueled the stock's momentum, which has climbed more than 55% so far this year. This decision to invest in rapidly growing tech companies, though it is believed to be the work of his deputies, Todd Combs or Ted Weschler. Alphabet's shares have also been lifted by robust demand for AI-powered cloud solutions and that restricted corrective actions regarding its dominance in search engines.

The commercial promise of Gemini 3 is evident in its swift rollout across revenue-generating platforms, such as Google Search, and

, a feature that can automate complex processes like travel arrangements or email management. Enhanced coding and visualization features have , with Bank of America noting "strong adoption rates" for Alphabet's AI offerings.

Although the long-term effects of Gemini 3 are still uncertain,

Alphabet as a major contender in the AI landscape. "We would even say that this new release from pushes the boundaries forward in a meaningful way," wrote analysts at D.A. Davidson. With Alphabet's valuation still trailing its peers and the endorsement from Buffett, the company seems poised to benefit from the ongoing AI surge.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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