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This Stock Is Shaping the Future of Artificial Intelligence (AI), but Is It a Buy Right Now?

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  • Alphabet is responsible for key discoveries in the development of artificial intelligence as we know it.

  • Google Cloud is Alphabet’s fastest-growing segment, increasing revenue 28% year over year in the first quarter.

  • Alphabet is currently trading at a lower valuation than every other “Magnificent Seven” stock and the S&P 500.

  • 10 stocks we like better than Alphabet ›

Artificial intelligence (AI) has been one of the most discussed subjects over the past few years. It’s far from a new technology, but with the explosion in popularity of generative AI tools like OpenAI’s ChatGPT, it has soared into the mainstream.

The AI landscape is layered and evolving daily. Some companies are laying the groundwork and foundation for developing the technology, others are using this foundation to build their own tools, and some are perfectly content with simply using tools, like the average user.

When it comes to companies shaping the future of AI, one of the first to come to mind is Google’s parent company, Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), which has been one of the key players in the development of AI as we know it today.

What makes Alphabet so important to AI development starts with its research. Through its companies DeepMind and Google Research, Alphabet has been responsible for some of AI’s biggest breakthroughs.

It developed the transformer architecture that powers large language models (LLMs); it developed an AI program called AlphaFold that predicts protein structures, allowing for faster drug and vaccine developments; and its AlphaGo program was one of the first examples of how good AI could be at solving complex issues that many thought required human reasoning.

Alphabet operates in all three phases of the AI pipeline: research and development, training and deployment, and real-world applications (Gemini, Google Search, etc.). This helps keep operations streamlined, which may not be the case with companies that rely on other companies for infrastructure or AI models. For example, OpenAI relies on Microsoft for cloud infrastructure.

Some people have voiced concerns that AI tools could harm Alphabet’s core business, Google Search, by reducing the need to click on search ads when users can type the same question into a tool like ChatGPT and receive a more conversational answer.

In theory, it’s a fair concern, but there haven’t been any signs of this tangibly harming Alphabet’s business.



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31.3% of Warren Buffett’s $303 Billion Portfolio Is Invested in 3 Artificial Intelligence (AI) Stocks

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You won’t find Warren Buffett chasing the latest stock market trends, but several of Berkshire’s existing holdings are proponents of the artificial intelligence revolution.

Warren Buffett became the CEO of the Berkshire Hathaway (BRK.A 0.66%) (BRK.B 0.63%) holding company in 1965. He plans to step down at the end of this year, but he will continue to serve as chairman, so his brand of long-term value investing is likely to endure.

That’s great news for investors, because Berkshire stock generated a compound annual return of 19.9% between 1965 and 2024, almost twice the annual gain in the S&P 500 (SNPINDEX: ^GSPC) over the same period. In fact, a $500 investment in Berkshire stock would have grown to a whopping $22.4 million over that 59-year stretch, whereas the same investment in the S&P 500 would have returned a more modest $171,453.

Buffett has achieved those market-crushing results by investing in companies with steady growth, reliable profits, and strong management teams. He never chases the latest stock market trends, not even those as strong as artificial intelligence (AI). With that said, three of the existing holdings in Berkshire’s $303 billion portfolio of publicly traded stocks are using AI to supercharge their businesses.

Image source: The Motley Fool.

1. Amazon: 0.8% of Berkshire Hathaway’s portfolio

Amazon (AMZN -1.16%) operates the world’s largest e-commerce and cloud computing platforms. Berkshire invested in the company in 2019, but Buffett has expressed regret for failing to identify the opportunity much sooner.

Amazon has deployed over 1,000 AI applications across the entire organization, many of which enhance the customer experience on its e-commerce platform. They include a shopping assistant called Rufus that helps customers compare products to make more informed decisions, and an application called Project Private Investigator, which scans products for defects before they’re shipped from Amazon’s fulfillment centers.

But the company also runs the world’s largest cloud platform called Amazon Web Services (AWS), which offers businesses all the tools they need to develop their own AI software. That includes state-of-the-art AI data centers powered by chips from top suppliers like Nvidia, and ready-made large language models (LLMs) such as Nova, which Amazon designed in-house.

During the recent second quarter of 2025 (ended June 30), Amazon CEO Andy Jassy said AI revenue within AWS grew by a triple-digit percentage compared with the year-ago period, meaning it at least doubled.

Although Amazon stock represents a tiny fraction of Berkshire’s portfolio, the position is worth $2.3 billion so Buffett and his team can still make some serious money over the long term if the company’s AI initiatives continue to grow at the current pace.

2. Coca-Cola: 9.1% of Berkshire Hathaway’s portfolio

Cutting-edge technology and soda are an unlikely pairing, but innovation is exactly how Coca-Cola (KO 0.94%) maintains its position as the world’s largest beverage company. AI is becoming an important part of its strategy, transforming supply chains, logistics, and even marketing.

The company signed a groundbreaking deal with Microsoft Azure last year, under which it will spend $1.1 billion by 2029 to bring its AI ambitions to life. It will lean on the cloud giant’s expansive suite of tools like the Copilot virtual assistant, and Azure OpenAI Service which offers access to the latest LLMs from ChatGPT creator OpenAI.

In April this year, Coca-Cola signed a separate deal with Adobe to jointly develop a new AI tool called Fizzion. The soda giant manages over 200 brands worldwide, so marketing is always a very complex endeavour, but Fizzion will learn from the processes of human designers to speed up the creation of new assets within Coca-Cola’s time-tested and highly successful guidelines.

Buffett spent $1.3 billion to acquire 400 million Coca-Cola shares for Berkshire between 1988 and 1994, and he has never sold a single one. That position is now worth a whopping $27.5 billion, and it will pay Berkshire $816 million in dividends during 2025 alone. AI probably wasn’t on Buffett’s mind when he first invested in the soda giant, but he could reap significant rewards as this exciting technology unlocks new opportunities.

3. Apple: 21.4% of Berkshire Hathaway’s portfolio

Berkshire spent around $38 billion accumulating Apple (AAPL -0.19%) shares between 2016 and 2023, and by early 2024, that position was worth over $170 billion, which represented half the value of the conglomerate’s entire portfolio. Buffett and his team have since booked some profit by selling more than half of Berkshire’s Apple stake, which was probably more about prudent portfolio management than concerns about the tech giant’s future.

There are more than 2.35 billion active Apple devices worldwide, so this company could soon become the biggest AI touchpoint for consumers. It has been preparing for this moment for years by designing AI-ready chips for the iPhone, iPad, and Mac computers. This hardware paved the way for Apple Intelligence, which is slowly weaving AI software features into each of those devices.

Apple Intelligence introduced new writing tools that can summarize messages and emails, and generate replies with the click of a button. It can also generate images, and even learn to prioritize notifications based on the preferences of each individual user. Its capabilities will continue to expand, which might encourage customers to upgrade their devices more frequently so they have the necessary hardware to unlock every new feature.

Despite Berkshire’s selling spree over the past 18 months, Apple remains its largest position with a portfolio weighting of 21.4%.

Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Amazon, Apple, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



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Major artificial intelligence (AI) service companies such as Google, OpenAI, and Dipsyck are raising..

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Major artificial intelligence (AI) service companies such as Google, OpenAI, and Dipsyck are raising prices one after another for B2B users. This is a different result from the previous prediction that AI service prices will fall as AI use becomes more common and competition among companies intensifies.

In addition to the assessment that concerns that AI companies can raise prices after securing the market have become a reality, there are also growing calls for Korea to secure “Sovereign AI” (self-AI model) to prevent domestic companies from putting pressure on AI costs.

According to the information technology (IT) industry on the 2nd, China’s DeepSeek announced in a recent announcement that it will abolish the night discount system for corporate customers and adjust input/output unit prices from the 5th.

The current input is $0.07 per million token and the output is $1.10, but the output will go up to $1.68. The input remains at $0.07 if the same data is repeatedly used, but when new data is imported, $0.56 is added. Discounts that were only applied during the night hours will also disappear.

It is the first additional increase in half a year following a five-fold increase in fares in February. At the time, inputs were up from 0.014 to 0.07, and outputs were up from $0.28 to $1.10. The industry is concerned that the end of the night discount could increase the output rate by up to three times.

An IT industry official said, “As companies are feeling the effectiveness of AI, demand will remain even if rates are raised,” adding, “AI companies will try to take advantage of this to cover enormous development costs and infrastructure investment and maintenance costs.”

A similar trend is also seen in other global AI companies. OpenAI unveiled GPT-5 in August, changing its enterprise ChatGPT pricing plan from a flat-rate to a usage-based system.

In the past, all functions could be used for a certain amount of money on a monthly basis, but in the future, credit will be purchased and used as much as necessary. If you choose an advanced function, you will be charged additional costs, and the specific unit price will vary depending on the terms of the contract, so it was not disclosed. Only team pricing plan for small organizations will have a flat rate of $25 to $30 per month per user.

Google also raised Gemini rates in June. Input for the 2.5 Flash model increased by $0.15 to $0.30 per million token and output by $0.60 to $2.50, respectively, by nearly doubling and quadrupling. The system of differential application of rates by performance has disappeared and a single pricing system has been introduced. Instead, the flashlight model is newly established to provide relatively low-cost options of $0.10 input and $0.40 output, but from the perspective of companies, the overall unit price has risen, increasing the cost burden.

Anthropic also introduced weekly usage restrictions in July to prevent some subscribers from using Claude’s coding tools indefinitely, and the latest model Sonet 4 has a new rate system.

Sonet 4 supports a super-large context function that can process up to 1 million tokens, but from inputs exceeding 200,000 tokens, you will be charged $6 in input and $22.50 in output per 1 million token.

Some point out that even if some AI models lower unit prices, the burden on companies is increasing.

According to the Wall Street Journal (WSJ), companies that have introduced AI, such as chatbots, document summaries, and code writing, have seen their token unit prices fall, but their actual bills are increasing. The information also said, “The price of advanced AI models has not fallen in the past six months.”

In particular, the spread of agent-type AI applications has led to a surge in token usage, and the amount of computation has increased in the process of repeatedly executing the same query several times or driving its own calculation program.

Big tech such as Google, Meta, and OpenAI can afford these costs based on their enormous financial power, but startups and small and medium-sized companies are struggling with unexpected spending.

An industry official said, “In a situation where the use of AI is essential, the cost burden can hinder innovation,” adding, “In the end, there is a high risk that viable companies will be concentrated on large companies with capital power.”

[Reporter Kim Kyu-sik/ Silicon Valley correspondent Wonho-seop]



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From bugs to bypasses: adapting vulnerability disclosure for AI safeguards – National Cyber Security Centre

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From bugs to bypasses: adapting vulnerability disclosure for AI safeguards  National Cyber Security Centre



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