Berkshire Hathaway Allocates $10.93 Billion to AI Holdings Under Abel With Positions Now Below Cost

Berkshire's second-quarter 13F filing shows the Alphabet stake established at prices above current levels while Bending Spoons also retraced after an initial post-purchase rally. The moves mark the first large-scale technology deployment from the $365.5 billion cash reserve built under Buffett, who doubled reserves from roughly $150 billion at end-2021 to over $370 billion by late 2025 by avoiding elevated valuations.

The timing aligns with US policy incentives favoring AI infrastructure. Federal data and state permitting records indicate Democratic-led jurisdictions now account for the majority of planned data-center capacity, creating concentrated demand signals that reward early capital commitments even when near-term prices decline. Abel's deployment therefore responds to visible state-level capacity pipelines rather than short-term equity momentum.

Third-quarter results will test whether buybacks resume at record share prices and whether Geico claims costs and BNSF fuel surcharges offset any AI-related mark-to-market pressure. Primary filings show no change in the long-standing authority to repurchase when shares trade below intrinsic value thresholds.

Continued cash deployment into AI names will depend on further valuation resets tied to capacity build-out timelines rather than earnings revisions alone.