The competition among billionaires for the title of the world’s richest person intensified on Wednesday with the unexpected resurgence of Larry Ellison. In a remarkable turn of events shortly after the stock market opened, shares of Oracle Corp. surged by over a third, temporarily allowing Ellison to claim the title from the longstanding champion, Elon Musk. However, the volatile nature of the stock market saw Musk regain his position by the end of the trading day, according to reports from Bloomberg.
By the close of trading, Musk’s net worth stood at an impressive $384.2 billion, while Ellison's wealth reached $383.2 billion. The stark contrast in their fortunes underlines the staggering scale of their wealth; each billionaire's fortune could sustain the lifestyles of approximately 5 million typical American families for an entire year, which is roughly equivalent to the entire population of Florida. Alternatively, these sums could allow all citizens of South Africa to take a year-long vacation without producing any goods or services, based on the country’s gross domestic product.
The temporary shift in wealth rankings resulted from Oracle's blockbuster earnings report, which showcased multibillion-dollar contracts fueled by the rapidly expanding artificial intelligence sector. Ellison, who co-founded Oracle and owns about 40% of the company, saw his net worth increase by $100 billion in just over half an hour following the stock surge. Oracle announced it had secured over $300 billion in new deals, including contracts with major players like OpenAI, Meta, Nvidia, and Musk's xAI.
According to the earnings report, Oracle anticipates a remarkable 77% increase in revenue from its cloud infrastructure business, projecting earnings of $18 billion for the current fiscal year. This figure is expected to rise to a staggering $144 billion within the next four years. During an earnings call, Ellison emphasized that Oracle would not only profit from its computing centers that support next-generation chatbots but also from the daily operations of AI systems that automate various tasks across industries, including manufacturing, pharmaceuticals, finance, and legal sectors. As Ellison aptly stated, “AI Changes Everything.”
While Ellison celebrates his recent windfall, Musk has been facing challenges with Tesla, the electric car manufacturer that initially propelled him to the title of the world’s richest person four years ago. Despite hopes for a recovery in electric car sales after a significant drop earlier this year, Tesla's shares have been trending in the opposite direction, declining by 14% year-to-date. Musk’s involvement in various private enterprises, including SpaceX, xAI, and the recently rebranded X (formerly Twitter), has added complexity to his financial narrative.
Musk's attempts to redirect investor attention towards Tesla’s advancements in robotics and AI have been met with mixed results. The company encountered a 40% drop in sales within the European Union earlier this summer, marking the seventh consecutive month of decline. This downturn has been attributed to customer backlash following Musk's support for extreme right-wing politicians on social media. Additionally, Tesla has been losing market share in the U.S. as buyers disenchanted by Musk's political affiliations have opted to avoid Tesla showrooms.
As the trading day concluded on Wednesday, Oracle's stock closed at $328.33, reflecting a remarkable 36% increase, while Tesla’s shares rose by less than 1%, settling at $347.79. The ongoing rivalry between Ellison and Musk serves as a fascinating glimpse into the dynamic world of billion-dollar fortunes and highlights the significant impact that market fluctuations and corporate performance can have on the lives of the world's wealthiest individuals.
