Berkshire Hathaway Inc (BRK.B)

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Berkshire Hathaway expands into AI sector with diverse portfolio
By: Investing | November 7, 2023

Warren Buffett's Berkshire Hathaway (NYSE:BRKa) has broadened its investment strategy to include substantial holdings in companies with significant AI technology, despite traditionally shying away from tech stocks. Notable names in Berkshire's $342 billion portfolio now include Coca-Cola (NYSE:KO), Amazon (NASDAQ:AMZN), Snowflake (NYSE:SNOW), Bank of America, and Apple (NASDAQ:AAPL).

Coca-Cola has been leveraging AI for marketing and product development, highlighted by its Masterpiece campaign and the AI-formulated Y3000 Zero Sugar drink. The beverage giant also employs a global head of generative AI, indicating a commitment to the technology.

Amazon, another major holding under Berkshire Hathaway, has been using AWS for AI-related operations. The e-commerce giant invested $4 billion in Anthropic and utilizes Trainium and Inferentia data center chips for future models. This move has attracted developers who rely on Nvidia (NASDAQ:NVDA)'s technology.

In the realm of cloud services, Snowflake provides an AI component for business data aggregation. The company recently acquired Neeva to enhance its capabilities in natural language data search.

Bank of America, also part of Berkshire's AI-focused portfolio, has integrated an AI chatbot named Erica into its CashPro digital banking platform. The bank has also announced plans for a $3.8 billion innovation investment.

Apple, known for its tech prowess, uses the A17 Pro CPU processor in its iPhone 15 Pro lineup to handle enhanced AI workloads. The company is also reportedly developing a competitor to ChatGPT alongside large language models.

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