Buffett's successor Greg Abel spills the tea on GOOGL's genius move: Just celebrated Buffett's 96th birthday, and he's in great spirits. The two of them are practically on the phone every day discussing Japanese stocks. 1. Why are they bullish on Google? When Greg received Google's placement notice, he immediately called Buffett. The two quickly agreed to go all-in, suggesting they snap up a massive $10 billion allocation. They even managed to secure a 6.5% discount! Berkshire's massive portfolio of physical businesses gives them a clear view of how AI is driving huge efficiency gains and cost reductions in traditional industries. And Google is one of the key players riding the AI wave. 2. The ultimate bottleneck for AI development isn’t chips—it’s power and infrastructure. Greg, with decades of experience in energy and infrastructure, pointed out: building data centers is fast, but securing power supply, transmission lines, land approvals, and site prep takes forever. Power will become the biggest hard constraint on AI's compute expansion. 3. AI is already consuming 8% of electricity. Take Iowa, where Berkshire Energy operates, as an example. Just last year, data centers consumed a whopping 8% of the state’s total electricity supply! And that number is still climbing. Next bottleneck: power!