What does Berkshire Hathaway have to do with this?

Berkshire recently invested in Alphabet, leading some to believe the stock was undervalued, but the drop weakens that thesis.

Will Alphabet's core business be affected?

In the short term, core businesses (advertising, cloud) seem unaffected, but losing AI talent could impact future growth.

Berkshire Hathaway's Alphabet Bargain Looks Less Attractive After AI Scientist Exit

A key DeepMind scientist's departure to Anthropic triggered a sharp decline in Alphabet's stock, raising questions about Berkshire Hathaway's recent investment. The move is a blow to Alphabet's AI ambitions.

June 22, 2026

2 min read

Source: Barrons.com

According to a report from Barron's, Alphabet (GOOGL) shares fell sharply after news that a prominent Google DeepMind scientist is leaving to join rival AI startup Anthropic. This development is a setback for Alphabet's AI initiatives and casts doubt on Berkshire Hathaway's (BRK-B) recent investment in the stock.

Details

The scientist, whose name was not disclosed, is leaving DeepMind for Anthropic, an AI startup backed by Amazon and previously by Google itself. The departure is seen as a significant loss for Alphabet's AI capabilities, especially amid fierce competition from OpenAI and Anthropic.

Context

Berkshire Hathaway recently disclosed a stake in Alphabet, leading some analysts to view the stock as undervalued. However, the recent decline weakens that thesis, at least in the short term. The stock had rallied after the Berkshire news but has since given back gains.

What It Means for Investors

Investors who followed Berkshire's lead may be disappointed, but it's too early to judge the trade. AI challenges could weigh on Alphabet's performance, but the company still has strong advertising and cloud businesses.

Frequently Asked Questions

The stock fell after a top DeepMind scientist left for rival Anthropic, raising concerns about Alphabet's AI capabilities.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.