The Oracle of Omaha (Warren Buffett) to Step Down As CEO of Berkshire Hathaway [Read It And Eat 08-05-2025]

The Oracle of Omaha, founder and CEO of Berkshire Hathaway announces he would be stepping down from the role of CEO at the end of 2025, to be replaced by Greg Abel. Apple enters Google territory by launching their own AI search page. The US. and UK to sign unprecedented trade deal. All this and then some in today's Read It And Eat.

• Major Headlines 

  
  

• Warren Buffett To Step Down As CEO of Berkshire Hathaway

• Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, is stepping down after leading the company through an extraordinary period of financial success. From 1965 to 2024, Berkshire Hathaway stock has achieved an astonishing return of 5,502,284%, dwarfing the S&P 500's return of 39,054% during the same period. This remarkable performance translates to a compound annual growth rate of 19.9% for Berkshire compared to the S&P's 10.4%.

  Buffett made the announcement during Berkshire Hathaway's 60th annual shareholders meeting on Saturday, May 3, 2025. He expressed his belief that it was time for Greg Abel, currently the vice chairman of Berkshire Hathaway, to take the helm as CEO. "I think it's the time has arrived where Greg should become the chief executive officer of the company at year-end," Buffett stated, highlighting his intention to inform the board of directors of his recommendation.

  Following Buffett's announcement, Berkshire Hathaway's board unanimously approved the transition on Sunday, May 4, 2025. Abel is set to officially assume the role of CEO on January 1, 2026, while Buffett will remain as chairman of the board. During the meeting, Buffett also addressed the company’s substantial cash reserves, which totaled $347.7 billion at the end of the first quarter. He explained his strategy of maintaining a significant cash pile, stating, "We would rather have conditions that have developed where we would have, like, $50 billion or something like that. But that just isn't the way the business works."

  Buffett's legacy at Berkshire Hathaway is marked by unparalleled resilience. Over the past 60 years, the company has only fallen behind the S&P 500 in two of the 13 years when the index closed lower. His long-term perspective and strategic investments have positioned Berkshire as a leader in various sectors, including insurance, utilities, and consumer goods. The Financial Times

  
  

• OpenAI Looks to Partner with Governments to Expand Global AI Infrastructure

• OpenAI has announced a new initiative called OpenAI for Countries, aimed at collaborating with governments to build the infrastructure needed to support and scale AI tools globally. Through this program, OpenAI plans to work closely with national partners to help expand data center capacity and tailor AI products — like ChatGPT — to local languages and specific regional needs.

  The program will be jointly funded by OpenAI and participating governments, with an initial goal of launching 10 projects worldwide. While the locations haven’t been disclosed yet, OpenAI says the broader mission is to help promote “democratic AI” — in other words, encouraging the adoption of Western-developed AI technologies over alternatives from geopolitical rivals like China.

  This effort is expected to complement OpenAI’s ongoing Project Stargate, its major AI data center expansion initiative, which may eventually extend beyond the U.S. The two initiatives could potentially share infrastructure or investor backing as OpenAI ramps up its international presence. The New York Times

  
  

• Apple Eyes AI Search for Safari, Raising Stakes for Google

• Apple is gearing up to add AI-powered search tools to Safari — a move that could shake up Google’s long-standing dominance in the online search space, especially on iPhones. The news hit Google-parent Alphabet hard, with shares sliding 7.3% and wiping out around $150 billion in market value.

  According to a source familiar with the matter, Apple executive Eddy Cue testified at a U.S. antitrust trial this week, revealing that Apple is “actively looking at” reworking Safari. Cue noted that Safari searches actually dipped for the first time last month, as more users began turning to AI tools instead. Apple’s stock also edged down, but the bigger spotlight was on the potential disruption this could bring to Google’s search ad business.

  Google responded by pointing out continued growth in overall search traffic — including from Apple devices — citing innovations in voice and visual search as drivers. However, Cue’s comments suggest a deeper shift could be coming, as Apple explores adding other AI-powered options like OpenAI’s ChatGPT and Perplexity AI as future search alternatives.

  That’s a big deal for Google, which reportedly pays Apple around $20 billion a year to remain the default search engine on Safari. If that exclusivity ends, analysts say it could have serious consequences for Google's market share and advertising revenue. While Google has been ramping up its own AI tools — including Gemini and AI Overviews — the rising popularity of generative AI platforms could give users and advertisers more reason to look elsewhere. TechCrunch

  
  

• Apple Asks Appeals Court to Delay Key Ruling in Epic Games Legal Battle

• Apple is urging a U.S. appeals court to delay a recent ruling that would force it to make significant changes to how it runs its App Store. In a filing with the 9th U.S. Circuit Court of Appeals, the company argued it would face “irreparable harm” if the court doesn’t pause a judge’s order issued on April 30. That ruling stems from Apple’s ongoing legal battle with Epic Games, which originally sued Apple in 2020 over its tight control of in-app purchases and app distribution on iOS.

  The judge, Yvonne Gonzalez Rogers, found Apple in contempt of a prior injunction and ordered the company to stop certain practices, including charging a 27% fee on purchases made outside the App Store. Apple pushed back in its filing, claiming the court’s directive overreaches by interfering with its core business operations. It also argued that developers shouldn’t be allowed to place links in their apps directing users to external payment methods without limits.

  Epic Games quickly responded, calling Apple’s appeal a “last-ditch effort” to protect its dominance and what Epic describes as “junk fees.” The company said developers have already begun offering consumers better deals and more payment options since the court’s order took effect, suggesting that a more open app ecosystem is both possible and beneficial to users.

  In her ruling, Judge Gonzalez Rogers accused Apple of deliberately trying to preserve billions in revenue in defiance of the original injunction. She went as far as referring the company—and one of its executives—to federal prosecutors for a possible criminal contempt investigation. As Apple’s legal fight continues, the outcome could have far-reaching consequences for how tech giants manage their platforms and engage with developers. Bloomberg

  
  

• U.S. and U.K. Set to Unveil Landmark Tariff-Cutting Trade Deal

• The U.S. and U.K. are expected to announce a deal on Thursday to lower tariffs on select goods—the first such agreement since former President Trump imposed global trade levies. Trump teased the news on Truth Social, while Prime Minister Keir Starmer is also expected to share an update.

  Sources say the deal will likely include reduced U.S. tariffs on British steel and autos, with the U.K. offering cuts on U.S. car tariffs and easing its digital services tax. However, broader tariffs introduced under Trump remain under review.

  Though modest in scope, the agreement carries political weight. Both countries are keen to ease trade tensions and show progress amid broader concerns about inflation and global supply chains.

  The announcement comes as the U.S. also prepares for trade talks with China in Switzerland—potentially signaling a broader shift toward easing global trade friction. The New York Times

  
  

• Minor Headlines 

• Instacart CEO Fidji Simo to Lead OpenAI’s Applications Division. TechCrunch

• Toyota Faces 21% Drop in Annual Profit as Tariffs Impact Results. Bloomberg

• Baidu in China Seeks Patent for AI System to Translate Animal Sounds. Reuters

• Pound Holds Steady, UK Stocks Surge as US Trade Deal Expected Before BoE Announcement. Bloomberg

• Pro-Palestinian Demonstration at Columbia University Leads to Dozens of Student Arrests. CNN

• NYC Helicopter That Crashed Broke Into Three Parts, According to NTSB Report. Reuters

• M&A Activity Drops to 20-Year Low After April 2nd 'Liberation Day'. CNN

• Private Equity and Venture Capital Firms Poised to Support Europe's Defense Build-Up. Financial Times

• UBS and General Atlantic Launch Private Credit Partnership. Reuters

• Interactive Brokers Expands Trading to Include Forecast Contracts. Bloomberg