The Strategy of Artificial Intelligence of the Bilian Warren Buffetta (AI) may surprise you

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Warren Buffett is not known for its technological investment. For decades, he has known the sector. This caused him problems during DOT-COM bubbles when the technology supplies increased in value. But when that bubble jumped up, Buffett looked like a genius.

In recent years, artificial intelligence supplies (AI) have brought more on the market. Many of the world’s most respected companies are strongly exposed to tails. This time, however, Buffett doesn’t stick to the side. In fact, he has several bets with more billions of dollars to AI’s growth.

Currently, Buffett’s Holding Company, Berksshire HathawayThere are several major investments in companies exposed to the AI revolution. Interestingly, none of these is a pure game on AI. That is, Buffett It is not necessary to bet on AI directly through these investments. Instead, he assigned capital to companies that make most of their income from other sources, but undoubtedly have a ton of exposure to AI.

Consider Berksshire Investment in Apple (NASDAQ: AAPL). This is currently the biggest public trading position of Berksshire, with a value of about $ 75 billion. Apple, of course, generate most of their revenue by selling consumer devices such as iPhone, IMACS, MacBooks and iPads. But the company also has a smaller but growing revenue segment related to services. Service revenues are constantly increasing, from 19.8% of sales in 2022 to 24.6% of sales in 2024.

What exactly is made up of services income? A large part of this comes from its app store, but there is also a long tail of income from things like licensing, apple care and third -party subscription. Many of these flows are directly exposed to the rise of AI. From last month, Chatgpt It had over 400 million users, many of which use iPhone appliances to access the app. Premium subscribers pay their subscriptions using the Apple App Store, generating direct revenue for the company.

But Apple benefits from AI and sources that do not create revenues. His assistant Siri Voice recently experienced a great upgrade, and Apple Intelligence was made on most of his newer devices. These features increase the attractiveness of his hardware, indirectly creating more revenues for the company.

Another of Buffett’s AI bets is Amazon (NASDAQ: AMZN). Berksshire currently owns about $ 2.2 billion in Amazon shares. Just like Apple, Amazon’s main focus is not Ai, but there is no doubt that the company has a great exposure to the growth industry.

Last year, the company generated about $ 55 billion per quarter for its e-commerce department. In the meantime, he has generated about $ 35 billion in revenue for his Amazon Web Services department (AWS).

Almost all AI apps and services require a distributed calculations to work. This has created a huge growth industry for the main providers of cloudy nets like AWS. Basically, the more AI industry leaves, the more demand will experience.

Understanding both Apple’s and Amazon’s business models – probably Buffett’s biggest bet with the presentation of AI – it is clear that Buffett is not necessarily inclined to bet directly on AI. Instead, he invests in large companies that will benefit from the AI revolution in direct and indirect ways.

Thus, although there are many AI shares in which the investment today, those who want to follow Buffett’s footsteps should find companies that can progress, whether or not AI’s long-term hyper is realized or not.

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John Mackey, former Whole Foods Market CEO, Amazon Branch, is a member of the Board of Directors Motley Fool. Ryan off There is no position in any of the shares mentioned. Motley Fool has positions and recommends Amazon, Apple and Berksshire Hathaway. Motley Fool has disclosure rules.

The Strategy of Artificial Intelligence of the Bilian Warren Buffetta (AI) may surprise you originally published by Motley Fool

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