Three billionaire investors poured a combined $5.6 billion into Alphabet Inc. during the third quarter, betting on the Google parent's artificial intelligence push.
Warren Buffett's Berkshire Hathaway initiated a $4.3 billion position by purchasing 17.85 million shares.
Philippe Laffont's Coatue Management boosted holdings by 259%, adding 5.21 million shares worth approximately $1.27 billion.
Stanley Druckenmiller's Duquesne Family Office acquired 102,200 shares valued at $24.8 million.
The synchronized bets came as Alphabet delivered its first-ever $100 billion quarterly revenue.
What Happened
Berkshire's stake represents its 10th-largest equity holding despite Buffett's historical aversion to tech stocks.
The 95-year-old investor had previously expressed regret about missing Google's early growth.
"I blew it," Buffett said in 2018 about not investing when Berkshire's Geico unit was an early Google advertising customer.
Laffont's Coatue made Alphabet its fourth-largest position after the massive increase.
Druckenmiller opened fresh positions in multiple tech names while exiting Microsoft entirely during the quarter.
All three investments occurred before Alphabet's third-quarter earnings report on October 29.
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Why It Matters
Alphabet reported Q3 2025 revenue of $102.3 billion, up 16% year-over-year.
Google Cloud revenue surged 34% to $15.2 billion, accelerating from 32% growth in Q2.
CEO Sundar Pichai said the company signed more billion-dollar cloud deals through Q3 2025 than in the previous two years combined.
Over 70% of existing Google Cloud customers now use AI products.
The Gemini AI app reached 650 million monthly active users, up from 450 million in Q2.
Alphabet trades at approximately 27 times forward earnings, below competitors like Microsoft at 32 times and Nvidia at 42 times.
The billionaire investments signal confidence in Alphabet's ability to monetize AI while maintaining its dominant search and advertising businesses.
Alphabet shares rallied 5% in after-hours trading following disclosure of Berkshire's stake on November 14.
The stock has gained approximately 50% in 2025.
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