Greg Abel, chief executive of Berkshire Hathaway, highlighted significant growth opportunities linked to artificial intelligence during remarks on Wednesday. Speaking on CNBC, Abel emphasized the potential benefits for the conglomerate arising from the expansion of AI data centers, noting Berkshire’s recent increased investment in Alphabet.

Berkshire Hathaway has positioned Alphabet as its third-largest common stock holding, with nearly 106 million shares valued at approximately $37.8 billion at the end of June. Three months prior, Berkshire chairman Warren Buffett and Abel approved an additional $10 billion investment to support Alphabet’s development of AI infrastructure, including its Google and YouTube divisions. Abel described Alphabet as a “significant player” in the AI space, underscoring the strategic importance of this technology for Berkshire’s future growth.

In addition to discussing AI, Abel addressed ongoing challenges facing American consumers, citing persistent inflation and high mortgage rates as continuing pressures on household finances. He characterized the housing market outlook as a “bumpy road” in the near term, reflecting uncertainties and difficulties for prospective buyers.

The comments from Berkshire’s CEO underscore the company’s confidence in AI-driven technological advancement while also acknowledging broader economic headwinds that could affect overall market conditions.