The generative artificial intelligence (AI) revolution is in full force, with agentic AI now catapulting AI-related stocks to new heights.
Still, those who remember the internet boom and bust know that many darlings of that boom didn't become long-term winners. Some even went bankrupt. However, those who eventually emerged as winners of that boom became some of the world's biggest companies, making up most of today's "Magnificent Seven."
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Today, the multitrillion-dollar question is, who will be the winner of the AI revolution? Well, Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) Greg Abel just made a big bet that one of the Magnificent Seven internet-era winners will also win the AI races -- and Berkshire's investment itself could help make that bet a reality.
Berkshire triples down on Google
In the first quarter -- Abel's first with total control over Berkshire's investment decisions -- Berkshire more than tripled its investment in Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
In addition to tripling down on Alphabet stock last quarter, Berkshire subsequently said it would buy another $10 billion worth of the $80 billion equity raise that Alphabet recently announced on June 1. That would equate to another 28.6 million shares, increasing Berkshire's stake by another 50%, barring any additional Alphabet purchases made since March 31.
As of this writing, Berkshire's combined 86.7 million shares (that we know about) would amount to about a $30.9 billion stake at today's share price. That would make Alphabet Berkshire's fourth-largest public equity holding, behind only Apple, American Express, and Coca-Cola.
Alphabet has survived, now primed to thrive in AI
Back when Berkshire first established its position in Alphabet, I wrote that the likely reason was a reacceleration in Search-related paid clicks, which occurred in the second quarter of 2025 and was subsequently reported in the third quarter, when Berkshire took its initial position.
Alphabet was the cheapest of the Magnificent Seven stocks at that point due to fears that generative AI could disrupt Google Search, Alphabet's main cash cow. However, after Alphabet innovated and introduced features such as AI Overviews and AI Mode within the Search bar, paid clicks reaccelerated. That appeared to prove that the Search business wasn't going away, thanks to Alphabet's innovation.