In a surprising twist, Elon Musk has been dethroned from his long-held position as the world’s richest individual by none other than Larry Ellison, the co-founder of Oracle.
After an impressive earnings report was released by Oracle on Tuesday evening, Ellison’s wealth skyrocketed by an incredible $101 billion, bringing his total net worth to $393 billion, surpassing Musk’s $385 billion, as reported by Bloomberg.
Oracle’s stock took a massive leap, jumping 41% on Wednesday – marking potentially the largest single-day surge since 1992, thanks to booming demand for its data center capabilities primarily driven by AI clientele.
CEO Safra Catz announced during a post-market closure session that Oracle signed four multi-billion-dollar contracts in just one quarter, with expectations of more to come in the near future.
This optimistic outlook stems from Oracle’s position as a critical infrastructure provider, meeting the extensive computing needs of AI companies. Notably, Oracle secured a deal in July to supply ChatGPT’s parent company, OpenAI, with 4.5 gigawatts of electricity for its AI services.
Ben Reitzes, an analyst from Melius Research, expressed significant excitement over Oracle’s earnings report, calling the company’s $455 billion backlog in AI services demand “staggering” in a note to investors.
With Ellison being the largest individual shareholder, there’s a strong possibility that he may hold the title of the world’s richest person if Oracle’s stock continues its remarkable rise when markets open on Wednesday. However, such a jump is quite unusual for a firm with a substantial market cap just under $700 billion, currently ranked as the 13th most valuable company as of Tuesday’s close. Oracle is nearing a market valuation of $1 trillion.
Bloomberg indicated that the increase in Ellison’s wealth marks the largest one-day growth ever noted in the index. The Bloomberg Billionaires Index will provide updates after the market closes on Wednesday.
With Oracle’s ascension as a formidable player in the AI technology sector, it has benefited greatly from the tech boom that has propelled Nvidia to the title of the world’s most valuable company, valued at over $4 trillion. During this time, Microsoft also briefly exceeded a $4 trillion valuation. Among the top eight valuable companies in the S&P 500, all have roles in shaping the AI-driven future.
Reitzes remarked, “Microsoft and Oracle are no longer just software companies; they are regarded as essential AI cloud infrastructure stocks that are simultaneously involved in the software business.”.
So far in 2023, Oracle’s stock has rocketed by 103% amid the AI age.
Musk first clinched the title in 2021 and has generally retained a tight grip on it for the last few years, largely due to his various investments in Tesla and SpaceX. Throughout his journey, he has lost the title on two occasions – first in 2021 to LVMH CEO Bernard Arnault and later in 2024 to Amazon founder Jeff Bezos.
Despite these setbacks and personal challenges, Musk has managed to thrive. His recent compensation package could be valued at nearly $1 trillion if Tesla reaches certain performance milestones.
Ellison’s journey toward becoming the world’s richest person began back in 1977 when he dropped out of college to help establish Oracle. At the age of 81, he holds ownership of 98% of the Hawaiian island of Lānaʻi and played a pivotal role in reviving the Indian Wells tennis tournament in California, which has earned the title of the “fifth slam”.
He also maintains close ties with President Donald Trump and has often appeared alongside him at White House technology events, securing government contracts for Oracle. Additionally, rumored plans for acquiring TikTok have yet to materialize.
