In a remarkable turn of events, Larry Ellison, the co-founder of Oracle, has dethroned Elon Musk as the world's richest person. As of Wednesday morning, Ellison's net worth soared to an impressive $393 billion (£290 billion), surpassing Musk's wealth, which now stands at $385 billion (£284 billion), according to the latest data from the Bloomberg Billionaires Index.
The significant rise in Ellison's fortune can be attributed to a staggering increase of over 40% in Oracle's stock price. This surge followed the company's announcement of a surprisingly optimistic outlook for its cloud infrastructure business and lucrative artificial intelligence (AI) contracts. Ellison's wealth, closely tied to Oracle's stock performance, reflects his long-term investment in the company he helped establish over five decades ago.
Elon Musk had maintained the title of the world's richest person for nearly a year. However, his fortune faces uncertainty as shares of Tesla, his electric vehicle company, have declined this year. Investor concerns have been heightened by the Trump administration's rollback of electric vehicle initiatives, coupled with growing consumer backlash due to Musk's political involvement. Despite a potential pay package worth over $1 trillion (£740 billion) contingent on meeting ambitious targets over the next decade, Musk's financial standing is under pressure.
Oracle's recent performance has been bolstered by an escalating demand for data center infrastructure. In its quarterly earnings report released on Tuesday, the company projected a remarkable 77% increase in revenue from its cloud business, forecasting earnings of $18 billion this year. The company anticipates continued growth in the coming years, driven in part by a surge in demand from AI companies for its data center services. Oracle has already signed four multibillion-dollar contracts in the last quarter, with expectations of additional deals in the near future, as stated by Chief Executive Safra Catz.
At 81 years old, Larry Ellison has positioned himself as a significant figure in both the tech world and political landscape. He co-founded Oracle in 1977 and gained public recognition in the 1990s for his extravagant lifestyle and business acumen. Serving as Oracle's CEO until 2014, he currently holds the titles of chairman and chief technology officer. Ellison has also aligned himself with President Trump, notably participating in the announcement of a project called Stargate, aimed at building AI infrastructure in the U.S.
Oracle is currently rumored to be a potential buyer for TikTok, the popular app owned by the Chinese internet company ByteDance. TikTok faces a potential ban in the U.S. unless it divests from its ByteDance ownership. When asked in January about Musk's interest in acquiring TikTok, Trump expressed his preference for Ellison to make the purchase. Beyond TikTok, Ellison's media ambitions have expanded, as he financed a substantial $8 billion bid by his son for Paramount, the owner of CBS and MTV. This deal, involving the media company Skydance, which is controlled by his son David, was successfully closed last month.
As the landscape of wealth and influence continues to evolve, the rivalry between Ellison and Musk underscores the dynamic nature of the tech industry and its intersection with politics and media.
