In a surprising turn of events in the financial realm, Elon Musk has been dethroned as the world’s richest individual, giving way to Larry Ellison, the co-founder of Oracle. According to Bloomberg, Ellison’s wealth exploded by an astounding $101 billion following Oracle’s robust earnings report, bringing his total net worth to $393 billion, surpassing Musk’s own wealth which stands at $385 billion.
Oracle’s remarkable fiscal performance was largely attributed to a surge in demand from AI clients for their data center capabilities. This demand propelled Oracle’s stock price up by 41% on Wednesday, marking what is projected to be its biggest single-day gain since 1992. CEO Safra Catz noted that Oracle secured four multibillion-dollar contracts during the quarter and anticipates signing even more lucrative deals in the months ahead.
The forecast for Oracle is electrifying, with the company positioning itself as a vital supplier of infrastructure required to meet the computing demands of AI enterprises. Notably, Oracle previously announced a significant agreement with OpenAI, the parent company of ChatGPT, involving the provision of 4.5 gigawatts of electricity necessary for its AI initiatives.
Analysts are already buzzing about Oracle’s earnings report. Ben Reitzes from Melius Research expressed in a note to investors that Oracle’s $455 billion backlog for AI services is nothing short of “staggering.” As the largest individual shareholder in Oracle, Ellison stands poised to reclaim the title of the world’s richest person if the stock maintains its impressive gains when the markets reopen. Currently, Oracle’s market value is nearly $700 billion, making it the 13th most valuable company in the market, and it is on the brink of exceeding a $1 trillion valuation.
Bloomberg highlights that Ellison’s sudden increase in wealth is the largest single-day gain ever recorded by its index. The Bloomberg Billionaires Index is expected to provide updated figures after Wednesday’s market close.
As Oracle emerges as a significant player in the AI sector, it rides the coattails of a tech boom that has notably seen companies like Nvidia become industry giants with valuations exceeding $4 trillion. Microsoft’s value has also briefly soared above this threshold. The most valuable companies in the S&P 500 currently align heavily with the burgeoning AI sector.
Reflecting on the evolving nature of these tech giants, Reitzes remarked, “Microsoft and Oracle really aren’t software companies anymore—they are AI cloud infrastructure stocks that happen to sell software too.” In 2023 alone, Oracle’s stock has surged by 103%, demonstrating its solid foothold in the market.
Musk initially claimed the title of the world’s richest person in 2021 and managed to retain it through various investments primarily in Tesla and SpaceX. However, he has faced setbacks, losing the title briefly in the past to both LVMH CEO Bernard Arnault and Amazon founder Jeff Bezos. Despite various challenges, including a recent pay package that could be worth close to $1 trillion depending on Tesla’s performance, Musk has remained a formidable figure in the financial landscape.
Meanwhile, Ellison’s journey to wealth began in 1977 after dropping out of college to help establish Oracle. At 81, the billionaire has also made headlines for owning 98% of the Hawaiian island of Lana’i and for revitalizing the Indian Wells tennis tournament, regarded as the “fifth slam.” His affiliations with former President Donald Trump have also drawn attention, particularly during technology events where he was seen alongside Trump, often in connection with lucrative Oracle contracts. Additionally, Ellison has been linked to potential acquisition plans for TikTok, although those ambitions have yet to materialize.
