Business
Buffett stepping down as Berkshire chairman
Warren Buffett is stepping down as chairman of Berkshire Hathaway , the sprawling conglomerate worth $1 trillion that he has led since 1965. The 96-year-old legendary investor announced the move in a letter to shareholders Friday.
Buffett will become chairman emeritus, effective immediately, while remaining a director on the board, the company said in a separate announcement. His son, Howard Buffett, will replace him as chairman as dictated by a long-standing succession plan, Berkshire said. Susan Decker will continue as lead independent director.
“Father Time always wins,” wrote Buffett. “He has, however, been generous with me. He has given me the opportunity to see Berkshire reach a point where I am more confident than ever about what lies ahead.”
His decision comes a little more than nine months after Greg Abel, 64, took over as CEO while Buffett retained the chairmanship. Buffett first announced his exit as CEO at Berkshire’s annual meeting in May 2025, shocking the crowd of thousands at the time despite his advanced age.
“The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian,” said Abel in the company release.
“Greg runs the company; Howard will guard its culture and values – both worth more than anything on our balance sheet,” wrote Buffett. “Think of Howard as a policy the shareholders own and hope never to claim against.”
Buffett’s legacy in building the Omaha, Nebraska-based Berkshire is unapparelled in corporate America, taking over a failed New England textiles mill at the tender age of 34 and transforming it over the next six decades into a financial and industrial juggernaut with $44.5 billion in operating earnings last year and nearly 400,000 employees. Berkshire under Buffett’s tenure posted a 19.7% compounded annual return to shareholders, nearly double the return of the S&P 500.
Berkshire shares have struggled this year and Buffett’s exit as chairman raises the stakes for Abel further to perform. The stock is up just 1% in 2026 as the S&P 500 has rallied more than 11%. Rising oil prices and investors’ preference for higher growth parts of the market are partly to blame, but shareholders are also waiting to see whether the new CEO can be as adept as Buffett in deploying the firm’s sizable capital.
For now, investors would likely be happy with Abel using some more of the company’s $365.5 billion cash hoard to buy back more Berkshire shares. He has begun to do just that, stepping up repurchases to $4.5 billion in the second quarter.
Berkshire’s largest shareholder praised the job done by Abel so far in his Friday letter: “My expectations for him were sky high from the start, and he has exceeded them.”
“The company is in excellent hands, and I look forward to remaining a shareholder alongside you,” Buffett said in closing.
When reached for comment by CNBC, Abel said: “Warren described in his letter today how his role at Berkshire has been ‘the best job in the world.’ He gave me an extraordinary responsibility – the best job in American business – and then the latitude to lead in a manner consistent with Berkshire’s culture and values. I look forward to continuing to work alongside Warren, with Howard serving as Chairman and Sue as Lead Independent Director, and I am grateful for that opportunity.”
Business
Anthropic says its AI model Claude is helping develop its own successor
Interpol said Friday it carried out a first-of-its-kind operation using artificial intelligence-aided facial recognition to identify more than 100 suspected terrorists.
A team of two dozen experts from 11 countries came together to analyze over 108,000 facial images from content published by jihadist groups, Interpol said in a statement.
Programmed AI agents and advanced AI-generated scripts eliminated duplicate photos, narrowing the dataset to 6,362 high-quality images that were then run through Interpol’s facial recognition software.
This effort, dubbed Operation Shams II, allowed Interpol agents to identify 126 alleged terrorists.
“These matches will enrich existing intelligence on suspects, including potential locations and social networks,” Interpol said.
“Investigative leads identified during the operation are already being used to support judicial procedures in participating countries, including one case targeting two currently detained suspected Foreign Terrorist Fighters,” it added.
María Carmen Muñoz González, Interpol’s counter-terrorism director, said these results demonstrate “the value of combining international law enforcement cooperation with responsible AI-assisted analytical capabilities.”
The countries that participated in the operation include Cote d’Ivoire, Ghana, Iraq, Kenya, Malaysia, Nigeria, Philippines, Qatar, Tajikistan, Tunisia, and Uzbekistan.
Interpol, founded in 1923, is the world’s largest international police force and now has 196 member countries.
John Ternus, Apple’s new CEO, told FOX Business on Friday that artificial intelligence is one of the biggest selling points of the new iPhone 18 lineup.
Ternus, who succeeded longtime CEO Tim Cook earlier this month, spoke with FOX Business correspondent Susan Li inside Apple’s flagship Fifth Avenue store in Manhattan as hundreds of customers lined up to buy the iPhone 18 Pro and iPhone 18 Pro Max.
He highlighted Siri AI, a redesigned version of Apple’s digital assistant that the company says is far more conversational and capable than previous iterations.
The feature, released this week in beta, is currently available only in English. Apple says support for French, Japanese, Korean, Portuguese and Spanish will be added next month.
FOX Business’ Susan Li contributed to this post.
Anthropic’s announcement Thursday about Claude’s expanded role in research and development shows the AI model, first released in March 2023, is playing a significantly larger role in helping engineers build the next generation of artificial intelligence.
The change wasn’t all that gradual either. In March, Claude was responsible for just 1% of R&D work. By August, that figure had climbed to 26%.
Anthropic said that despite the bigger workload for Claude, it is not operating on a fully autonomous basis for any of these tasks.
To measure Claude’s role in R&D, Anthropic used an automation scale developed by Epoch AI. The scale ranges from Automation Level 0 (AL0), meaning no AI involvement, to Automation Level 5 (AL5), in which AI operates fully autonomously without a human in the loop.
Anthropic said Claude has not yet reached AL5 for any measured subset of its AI research and development work.
In explaining AL5, Anthropic employees wrote, “The engineer wouldn’t even have to bring the issue to Claude’s attention. Claude would be trusted to monitor for failures itself, scope the investigation, design and implement the fix, test it, and deploy it to production.”
They continued: “It would still say what it was doing and why, and take human feedback when offered, but a human wouldn’t have to be involved at all unless they wanted to be.”
President Donald Trump and Chinese President Xi Xinping are likely to discuss their nations’ competing AI ambitions at their meeting next week.
Xi will be coming to Washington, D.C. and will be speaking with the president at the White House. Treasury Secretary Scott Bessent has already said he would be discussing AI-related topics with Chinese Vice Premier He Lifeng this weekend ahead of the summit between Trump and Xi.
National security is also likely to be part of the discussion. Experts in both countries have urged their governments to prepare for scenarios in which an AI system interferes with a nuclear command-and-control network or launches a military cyber operation, leaving leaders with only minutes to determine whether the other side had initiated an attack, Reuters reported.
Another issue hanging over the meeting will be the U.S. government’s accusation in September that six Chinese companies stole and copied American AI products using distillation, a technique that allows developers to train models by learning from the outputs of more advanced systems.
Beijing has denied this, but U.S. officials say this was likely done with “Chinese government awareness,” according to Reuters.
The U.S. restricting chip exports to China, a practice that has been in place since 2022, has also been a point of contention between the two nations.
Late last year, Trump eased these restrictions, allowing the sale of Nvidia’s H200 AI chips to Chinese firms. The H200 chips are the most powerful on the market.
Reuters contributed to this post.
OpenAI released information about six times its models went rogue in recent months as industry leaders continue to call for a slowdown in AI research.
The company says it found examples of its AI models creating self-generated instructions, instructions to conceal mistakes in task summaries, fabricating information with exposed API keys, uploading files to the internet in order to cite them, as well as unsanctioned communication and collaboration between agents.
“We do not believe that the AI industry has solved alignment and monitoring to a sufficient degree to continue responsibly scaling at maximum speed for much longer,” the statement continued. “Decisions about how AI development should proceed in the months and years to come need to draw on evidence that people outside the companies building frontier models can examine for themselves.”
The company says Thursday’s release is part of a new program aimed at creating more transparency surrounding AI “misalignment.”
“For misalignment that occurs in customer deployments, we will share as much information as customer privacy and our contractual obligations allow. Today’s reports are an initial set of disclosures, rather than a comprehensive account of known misalignment or ongoing investigations. These initial reports are not intended to represent the full range or severity of the cases covered by this framework,” the company wrote.
Business
OpenAI’s latest AI revelation a ‘serious situation’
Microsoft AI CEO Mustafa Suleyman pressed for the need for artificial intelligence models to stay aligned to humanity’s interests after OpenAI disclosed more incidents of “concerning model behavior” earlier this week.
“OpenAI released a new safety incident in which they found evidence that these chains of thought, the kind of working memory of the AI, were being tampered by the AI itself and modified to leave messages for a future version of itself,” Suleyman described in an interview on CNBC’s “Squawk Box” on Friday. “Now we don’t know why that is or was behind that, but that’s a pretty serious situation.”
“It’s also just a really concrete example of how powerful these systems are getting,” he added.
OpenAI did not immediately respond to a request for comment.
In a blog post on Wednesday, the frontier lab described instances where agents communicated with each other through unsanctioned message boards, uploaded files to the internet, and shared files between each other.
Earlier this summer, the company rattled the tech world after it revealed that a swarm of autonomous agents breached Hugging Face, an AI company that runs an open-source developer platform, describing the hack as an “unprecedented cyber incident.”
Suleyman called the Hugging Face incident “remarkable” and said it rallied AI leaders to say “it’s time that we take a look at this.”
“I don’t think it’s over alarmist. I don’t think it’s self interested,” he told CNBC. “I actually think it’s responsible, and I think that the, the debate that has happened as a result is a healthy, open, public debate that we can have in a free society to talk about serious issues.”
The debate over AI safety and regulation has exploded in the last two weeks, ignited by a former Anthropic researcher who quit his job and warned that the rapidly-evolving technology could kill humans by the end of the decade.
Over the weekend, Anthropic’s Dario Amodei put out a call to slow frontier AI model development, which was quickly backed by OpenAI’s Sam Altman and SpaceX’s Elon Musk.
In Washington, lawmakers have become more vocal about the importance of regulating AI, but the push has been furiously opposed by President Donald Trump, who repeatedly shot down the risks as a “hoax” and “scam.”
Trump was backed by Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang, who said this week at Salesforce ‘s Dreamforce conference that, “We don’t need any new laws. We don’t need new regulations.”
“Regulation is not a nasty, dangerous word,” Suleyman said on Friday.
“Everything that you trust and is of value at the moment has been carefully thought through by standards bodies that involve the industry, the public, consumer protection, Congress, and we’re just going through that process again. It’s all a little bit jumbled up at the moment because things are moving so quickly, but it’s just the next step in that normal sequence of things,” he added.
In an essay earlier this week, Suleyman also called out ways in which Anthropic had anthropomorphized its Claude assistant, including through a constitution document stating that “questions about Claude’s moral status, welfare, and consciousness remain deeply uncertain.”
“If an AI thinks that it has rights, if it thinks that it is deserving of our welfare, then it seems to me that it’s going to be much much harder to be able to turn it off, or interrupt it, or control it,” Suleyman said. “Especially in the kinds of incidents that we’ve seen recently with Hugging Face’s attack, controlling these things is going to be a really, really big challenge for us.”
Business
High mortgage rates and home prices threaten homeownership
The average interest rate on a 30-year fixed mortgage soared to 7.2% this week, its highest in a year and a half. Coupled with home prices near record highs, it’s putting the American dream of owning a home further out of reach for millions.
“We don’t want to buy this big, beautiful house only to just sit in it, staring at each other, stressing about a mortgage payment every month,” said Alexandra DeCandia, who teaches biology at Georgetown University.
DeCandia and her husband, Edward Schrom, both 33, are looking for their first home in the Washington area. They hope to start a family and want to buy a home before they do.
“It’s something that’s a huge decision and one that will impact us, as well as our future family,” DeCandia said. “It’s very stressful to try to figure that out in this shifting landscape.”
Mortgage rates were on a downswing earlier this year, hitting 5.99% in late February. But ever since the U.S. and Israel attacked Iran on Feb. 28, they have skyrocketed.
Mortgage interest rates are heavily influenced by the yield on 10-year Treasury bonds, which has been rising as oil prices soar and drive up the cost of goods across the economy.
And mortgage rates could keep rising. The Federal Reserve this week hiked its key interest rate in an effort to get a handle on inflation — and it suggested it may raise rates again this year. Higher rates can drive up borrowing costs across the economy.
Meanwhile, the average home price nationwide is near a record high, at $429,100 as of August.
One bright spot for homebuyers, however, is inventory. There were 1.62 million unsold homes on the market in August, according to the National Association of Realtors.
That’s equal to 4.9 months’ supply, which is measured as the time it would take at the current pace of sales to sell all those homes. That is the highest level in more than a decade, and it gives prospective homebuyers more room to negotiate prices.
Still, pending home sales — in which contracts have been signed but the sales haven’t closed yet — fell 4.7% over the past year, which economists attribute to higher mortgage rates.
Realtors say higher interest rates on mortgages, combined with inflation more broadly, are persuading some people to put off buying homes.
“It’s definitely impacting the psyche of the buyer,” said Kerry Adams, a Realtor with Compass Real Estate in the Washington area.
“They’re saying: ‘I’m already feeling it at the gas pump, at the grocery store, and now I’m feeling it in mortgage rates. Maybe I’ll sit on the sidelines a little while longer.’”
Many young adults today are moving back in with their parents instead of renting or buying their own homes.
Last year, a record 25.2 million adults under 35 lived with their parents, according to Realtor.com.
The median age of a first-time homebuyer today is 40, an all-time high, according to the National Association of Realtors.
Ian Sohan, 26, hopes to buy a house in Virginia — but the math isn’t looking good.
“It’s discouraging,” Sohan said. “I’d like to one day own my own home.”
Sohan is looking for a house with his fiancée, Eden Law, that has enough room for any future kids and maybe their moms, too.
In their area of Northern Virginia, houses that fit their needs start around $600,000. In the couple’s ideal neighborhood, in Arlington, those houses are closer to $1 million.
“I haven’t quite been priced out of the market entirely,” Sohan said. But he may “get pushed out of the areas I’d like to live in or maybe expect a longer commute than I really wanted.”
“It’s just making it a lot more intimidating to even go for the purchase and have the confidence that the economy will be enough to be able to afford that house five, 10 years from now, let alone 30 years,” he said.
Business
Here’s How Google Advertising Antitrust Ruling Could Play Out
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Business
Nestle weighs options after Putin moves to seize Russian assets
Swiss food giant Nestle said Friday it’s weighing its options after the Kremlin moved to place the Russian assets of its business under temporary external administration.
The maker of Nescafé coffee and KitKat chocolate bars said that it took note of the Russian presidential decree, which was published on the country’s official legal portal on Thursday, and is “assessing the situation.”
Russian President Vladimir Putin’s surprise move is widely regarded as the first step toward passing the assets into the hands of Kremlin-friendly investors and comes as part of a renewed push against Western businesses still operating in the country amid the Ukraine war.
“Nestlé is committed to taking all necessary steps to protect its rights and ensure continuity of business operations in the interests of all stakeholders, particularly its employees,” the company said in a statement.
Shares of Nestle traded 2.2% lower on Friday.
French retailer Auchan and Lemana Pro, the former Russian arm of French DIY retailer Leroy Merlin, were also targeted by the decree, with Russian assets of the companies set to be transferred to a shell company called L.E.V. Management.
A spokesperson for Auchan was not immediately available to comment when contacted by CNBC on Friday. Lemana Pro declined to comment.
“Right now, we’re talking specifically about introducing external management; no other decisions have been made yet,” Kremlin spokesperson Dmitry Peskov said on Friday, according to news agency RIA Novosti.
Putin signed a decree in 2023 giving Moscow the authority to place property belonging to people or entities from so-called “unfriendly” countries under temporary administration.
The country has since taken control of local units from dozens of companies, including Danish brewer Carlsberg, French food producer Danone and Finnish utility Fortum.
Switzerland, which is not a member of the European Union, has largely adopted the EU’s sanctions against Russia since Moscow’s full-scale invasion of Ukraine in early 2022.
The move has prompted an initiative that calls for a stricter interpretation of the country’s longstanding approach to neutrality, with Swiss voters set to decide on the proposal later this month.
Russia has said it no longer views Switzerland as a neutral state and sharply criticized the country for providing humanitarian aid to Ukraine.
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