Silicon Valley venture capitalist Chamath Palihapitiya told CNBC on Wednesday he sees Apple as a massive generator of cash, but the company is probably slipping on the innovation side.

"I think Apple is a productive cash machine. Is it a font of innovation? Unclear, trending to probably not," the Social Capital founder and CEO told "Squawk Box."

He said he can see why Warren Buffett pushed Berkshire Hathaway to add in the first quarter to its already massive Apple stake. "They are famous buyers of value. There's tremendous value at Apple. There's enormous cash flow in Apple."

Referring to Apple in a CNBC interview on Monday, Buffett said: "We bought about 5 percent of the company. I'd love to own 100 percent of it."

Last week, Buffett revealed to CNBC that Berkshire bought 75 million shares of Apple in the three months of the year, adding to the 165.3 million shares Berkshire already owned at the end of 2017. As of Tuesday's close, Berkshire's Apple stake is worth about $44.6 billion.