Billionaire investor Mike Novogratz is leaning into the AI boom while sidestepping the most hyped private name in the space, saying he prefers a newly Warren Buffett-backed tech giant over any direct bet on OpenAI.
In a new interview with Anthony Scaramucci, the Galaxy Digital chief says that while AI is not yet in bubble territory, he believes that it would be the biggest boom the world has ever seen.
He notes that AI is the defining trade of this generation.
“The reality is, I fundamentally believe AI is the most important technology of our lifetime, and this will be the largest bubble we ever see. We’re not even close. And I’ll give you some data points that if you’re already starting to look at 2027 earnings, right, because we’re finished 2025, these companies like Amazon and Microsoft, Google, Meta, they’re not trading at 25 times. They’re trading 17, 18 times, and they’re growing like crazy.”
Novogratz says rapid earnings growth across the tech mega-cap complex is changing how expensive the market really looks.
“And so, I think the market’s all of a sudden not as expensive because earnings are growing so fast… And I’ve talked to one of our largest investors. He’s like, ‘Dude, I’m buying.’ And so the psychology hasn’t shifted. And there’ll be a shift. You might be selling Nvidia and buying Google. You’ll have different leading horses, but I don’t think we have this wild overvalue everything.”
Turning to OpenAI, he says that even though he believes the market cap of the ChatGPT creator will soar, he’d rather buy and hold another leader in the frontier model race.
“I think the market cap [of OpenAI] goes higher, but I don’t want to play that one. I’d rather buy Google. Listen, Warren Buffett just bought Google. You rarely lose following Warren Buffett.”
Novogratz stresses that he is not betting on the outcome of a head-to-head model war between the leading AI labs.
“And again, I’m not smart enough to know if it’s going to be Gemini or OpenAI. I really am not. But Google’s valuation feels easier to swallow. And again, it’s so hard to tell. And we’re still early in this stuff.”
Last month, reports surfaced that Buffett’s Berkshire Hathaway bought 17.85 million shares of Alphabet (GOOGL) worth $4.33 billion in Q3 of this year.
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