Berkshire CEO Abel says AI to help power growth

Berkshire Hathaway CEO Greg Abel highlighted the potential of artificial intelligence (AI) to drive growth during a recent appearance on CNBC. After Berkshire invested $10 billion in Alphabet, the parent company of Google and YouTube, Abel noted the conglomerate's interest in AI data centers. He emphasized that American consumers are still dealing with the effects of high inflation and mortgage rates, making the housing market a challenging landscape in the near term.

Abel pointed out that Berkshire Hathaway Energy, the company's energy division, could also benefit from AI growth, given the increasing electricity demand for data centers. In Iowa, where Berkshire's energy business is headquartered, about 8% of its electricity consumption in the previous year came from data centers. Abel believes that energy will remain a significant constraint for the company, and AI growth presents a substantial opportunity for Berkshire Hathaway Energy.

The CEO, working alongside Berkshire Chairman Warren Buffett, expressed confidence in the home builder Taylor Morrison, anticipating strong performance from the company within the next five to ten years as more individuals pursue homeownership, even if they face hesitations in the short term. Despite the current housing market being "bumpy" due to higher mortgage rates and economic uncertainty, Abel stressed that consumers continue to struggle, stretching their dollars further.