@Manlobbi,

We agree that huge capex can be good if the returns on capital being employed are good. How can you or anyone else for that matter tell what the returns on at least $500 Billion (likely significantly more) of AI data center capex will be with any degree of confidence, taking into depreciation schedules.

To me it seems like almost all GOOG fans just take a deep breath & hope that Sundar & Ruth know what they are doing (i.e., jockey play); or just coat-tailing Warren. It may work out fine (or may not) for them but I don't think there is any real independent valuation work being done by anyone. I commend @iluvbabyb for perhaps the most honest post about GOOG.

For those who are coat-tailing Warren, I would point out that: (1) He & Greg are only committing 3% of Berkshire assets, thus position-sizing it appropriately given the highly uncertain nature of the beast, and to protect Berkshire if it turns out to be a mistake, and (2) It may be hard to believe but Warren does make mistakes (as he freely admitted many times). Just think of IBM purchase in the 2010s. He gave almost the same reason for that IBM purchase that Greg gave in his most recent CNBC interview, i.e., they have some insight from how Berkshire businesses are usuing IBM then/AI now internally.

Odds are that Warren & Greg are right but the those odds aren't 90%+.