Abel: Two ways Berkshire hopes in cash in on AI

Berkshire Hathaway CEO Greg Abel tells CNBC the company is pursuing AI opportunities on two paths.

In a live "Squawk Box" interview Wednesday morning, Abel said he sees providing energy to the growing number of AI data centers as a "significant opportunity for Berkshire and Berkshire Hathaway Energy" since he's long believed the biggest constraint for the buildout is having enough energy to operate the power-hungry facilities.

But, he says, the company will only sell energy to hyperscalers if there is "no impact to the rates of our other customers."

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Berkshire Hathaway CEO Greg Abel appears on CNBC during a trip to Tokyo, Japan. Photo: CNBC

The other avenue is Berkshire's now almost $36 billion investment in shares of Google parent Alphabet that was initiated by Warren Buffett in the middle of last year.

Abel says from the experience of Berkshire's own operating companies, he and Buffett knew AI was "going to have a significant impact on America and businesses," and "we saw Google as a significant player."

Abel did the interview from Japan, where he was visiting a Berkshire tool-making unit and meeting with executives of the "trading houses" in which Berkshire has significant equity stakes.

He says none of them mentioned rising Japanese interest rates as a "fundamental challenge right now."

And while Abel does not see "any type of immediate recovery" for U.S. homebuilders with a "bumpy road for a while," he expects Berkshire's newly acquired Taylor Morrison will be a "very strong asset" five to 10 years from now because the "American dream will continue to exist."

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