This is the $5.6 billion AI bet that brought together Buffett, Druckenmiller, and Coatue

Source: Yellow Original Title: This is the $5.6 billion AI bet that brought together Buffett, Druckenmiller, and Coatue

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Background

Several of the most influential investors in the world significantly increased their exposure to artificial intelligence in Q3, collectively allocating billions of dollars to Alphabet as confidence in the company’s AI strategy grows.

What happened

Regulatory documents show that Berkshire Hathaway, led by Warren Buffett, established a new position worth several billion dollars in Alphabet during the quarter, marking the conglomerate’s first recorded investment in Google’s parent company.

The stake, valued at approximately $4.3 billion at the time of purchase, signals a notable shift for Buffett, who has historically approached large technology investments with caution.

The move was replicated by other prominent investors.

Philippe Laffont’s technology-focused hedge fund, Coatue Management, dramatically increased its exposure to Alphabet, expanding its position more than threefold.

The fund added over five million shares during the quarter, bringing its total holdings to more than seven million shares and making Alphabet one of its largest portfolio positions.

Stanley Druckenmiller’s Duquesne Family Office also entered the stock for the first time, acquiring just over 100,000 shares.

Although smaller in size compared to the other allocations, the investment reflects Druckenmiller’s broader shift toward companies positioned to benefit from advances in artificial intelligence.

Together, the new and expanded positions represent over $5.5 billion in fresh capital directed to Alphabet in a single quarter, highlighting the growing conviction among veteran investors that AI will be a lasting engine of long-term value.

Why it matters

Alphabet’s recent financial performance provides context for that confidence.

Alphabet’s revenue for Q3 2025 (Q3 2025) was a record $102.35 billion, up 16% year-over-year.

Management attributed much of that momentum to the accelerated adoption of AI-powered features across all its products.

Recent initiatives include the global rollout of AI-generated search summaries, the launch of an improved Gemini model with superior reasoning and multimodal capabilities, and the ongoing expansion of AI infrastructure within Google Cloud.

These developments have helped position Alphabet as a central beneficiary of the growing demand from businesses and consumers for AI tools.

The convergence of record revenues and large-scale institutional buying suggests that some of the most experienced investors in the market see Alphabet not just as a traditional tech company, but as a long-term leader in the next phase of AI-driven growth.