Buffett Has AI Concerns, But Berkshire Benefits With 3 Stocks - Snowflake (NYSE:SNOW), Nu Holdings (NYSE:NU) (2024)

At the Berkshire Hathaway BRK BRK annual shareholder meeting, Warren Buffett‘s cautionary remarks about artificial intelligence (AI) contrast with his portfolio’s strategic investments in AI-focused companies.

Buffett likened AI to nuclear weapons, expressing concerns about its potential dangers. Despite acknowledging AI’s potential for good, Buffett highlighted the risks of deep fakes and scams.

And yet, Berkshire Hathaway has investments in AI-focused companies.

Apple Inc AAPL, Snowflake Inc SNOW, and Nu Holdings Ltd NU are among the tech giants in Buffett’s portfolio. Each company embraces AI’s potential.

Buffett’s cautionary stance and his portfolio’s strategic AI investments reflect a balanced approach to the evolving technology landscape.

Related: Apple Stock Is Getting A Boost From AI Today: What’s Going On?

Berkshire Hathaway’s Portfolio AI Plays

Apple: Apple’s venture into AI extends beyond its renowned consumer devices. The tech giant is developing AI chips designed to enhance the performance of AI software in data center servers. Known internally as Project ACDC (Apple Chips in Data Center), this initiative aims to position Apple at the forefront of the AI arms race.

By leveraging its expertise in chip design, Apple seeks to revolutionize data processing and AI capabilities in server environments. Apple stock commands 50% of the Berkshire Hathaway portfolio.

Snowflake: The cloud data warehousing firm is making waves in the AI arena. It introduced Snowflake Arctic, its large language model (LLM) that’s set to rival industry giants like OpenAI and Google.

Snowflake’s innovative “mixture of experts” architecture enhances its AI model’s performance. This makes it suitable for a wide range of enterprise applications. This strategic move underscores Snowflake’s commitment to advancing AI capabilities and providing cutting-edge solutions for its customers. Snowflake stock commands 0.35% of the Berkshire Hathaway’s portfolio.

Nubank: The Latin American fintech company touts approximately 94 million customers. It’s also harnessing AI to improve customer service and drive growth. Nu Videocast, a new format introduced by Nubank, features in-depth interviews with company leaders on strategic AI topics.

Nubank CTO Vitor Olivier, emphasizes AI’s role in the company’s DNA, particularly in enhancing customer service. With AI’s assistance, Nubank has achieved positive results in response time and problem resolution rates. Nubank’s strategic use of AI highlights its commitment to innovation and customer-centric solutions. Nu Holdings stock commands 0.26% of the Berkshire Hathaway’s portfolio.

As these companies continue to innovate AI, Buffett’s investments position Berkshire Hathaway to benefit from the evolution of AI technology.

Read Next: Warren Buffett Compares AI To Atomic Bomb, Warns Of ‘Enormous’ Potential For Harm