Alphabet’s stock reached a record high following Berkshire’s unprecedented $4.9 billion wager

Amid mounting concerns about an imminent bubble, Berkshire Hathaway‘s latest investment boosted the tech giant’s artificial intelligence initiatives. Causing Alphabet shares to rise nearly 6% to an all-time high on Monday.

One of the conglomerate’s most recent significant purchases under Warren Buffett is the acquisition of 17.85 million Alphabet shares, valued at roughly $4.93 billion at Friday’s closing. Berkshire, a tech-shy corporation, is making a rare entry into the market.

For a long time, the billionaire investor has likened Berkshire’s main stake, Apple, to a consumer goods company.

According to Steve Sosnick, chief strategist at Interactive Brokers, «purchasing a stake in a technology company may represent a different mindset at Berkshire. Although it does not represent a complete break from its value investing model.»

A number of business executives and experts have cautioned that the AI frenzy driving tech stock prices has separated valuations from fundamentals. And that the return on the hundreds of billions of dollars invested in data centers remains uncertain. This vote of confidence comes at a time when the general sentiment toward technology has turned cautious.

According to a number of analysts, Alphabet is at the forefront of AI because of its expanding infrastructure investments, the quick uptake of AI-based search engines, and a sizable advertising company that can finance its extravagant data center expenditures.