Warren Buffett's Successor, Greg Abel, Buys an AI Stock That Poses a Threat to Nvidia

Berkshire Hathaway’s new CEO Greg Abel has materially increased the company’s stake in Alphabet, reflecting a big institutional bet on Google’s AI and cloud strategy. Alphabet is commercializing its Tensor Processing Units (TPUs), signing large deals (Anthropic, Meta) and forming a Google–Blackstone JV to deploy ~500 MW of TPU capacity by 2027. That vertical push could capture meaningful AI-accelerator and neocloud share, posing competitive pressure on Nvidia’s data-center GPU franchise and on neocloud providers like CoreWeave and Nebius. Wall Street still views Alphabet as a growth story with accelerating cloud revenue and improving margins; analysts call the stock slightly undervalued versus consensus targets. Nvidia remains the dominant AI-accelerator incumbent, but the market impact is an intensifying competitive shift in AI infrastructure that investors should monitor for potential margin and revenue implications across chips, cloud services, and related equities.