Elon Musk has been deprived of his position as the richest person in the world by Larry Ellison, the co-founder of the Oracle and an associate of the US President Donald Trump.
The Bloomberg Billionaires Index reported that Ellison rose to a fortune of $393bn on Wednesday morning (PS290bn), topping Musk’s fortune of 385bn (PS284bn).
Oracle stock increased by over 40 percent when the database software firm provided a surprisingly optimistic forecast on its cloud infrastructure business and artificial intelligence transactions.
Ellison, the net worth holder of the company is a man who has gradually accumulated wealth throughout the last half of the decade. Oracle has of late been driven by the increased need of data centre infrastructure.
In its quarterly earnings report on Tuesday, the company estimated a 77 percent increase in the value derived through its cloud business during this year to $18bn, and additional growth in the years to come.
Another boost in Oracle stock that drove the stock dramatically high was the surge in demand of its data centres by AI companies.
It has already inked four multibillion-dollar deals with clients during the past quarter and expects to sign a number of others within the coming months, chief executive Safra Catz said on Tuesday.
The Oracle spurt comes at a time when Tesla shares, the most valuable enterprise of Musk, have come down during this year.
This has been coupled with investor nervousness in the Trump administration reversing electric vehicle programs with the Tesla electric vehicle maker on top of consumer criticism of the political interventions of Musk.
Musk was the world richest person by almost one year.
In 2021, Musk was first made the richest person in the world, and then later he was surpassed by Amazon.com Inc. and LVMH leader Jeff Bezos and Bernard Arnault. He repossessed it last year and had possessed it a little more than 300 days.
The lion share of his net worth is in the database software company, Oracle, which Ellison, 81, the co-founder and now the chairman and chief technology officer of the company.
The stock of Oracle, which had already experienced a 45 percent rise this year by the close of Tuesday soared 41 percent on Wednesday as the company announced more significant growth in bookings and a vigorous prognosis of its cloud infrastructure business. It is the highest single-day increase of the company.
Tesla Inc. shares, in their turn, are falling 13% in 2019. The board of the company has planned an enormous compensation package to Musk that can turn him into a trillionaire in the world provided he manages to achieve a set of ambitious targets.
Who is Larry Ellison, founder of Oracle?
Ellison who is the co-founder of the tech giant Oracle Corporation is its chairman and chief technology officer and was established in 1977 with an initial capital of just 2,000.
Ellison was born in June 1944 and went to several colleges such as the University of Illinois, University of Chicago and then relocated to California to establish his career.
In the year 2014, Ellison resigned as the chief executive officer of the company at an age of 37 years. In 2020, he relocated to the Hawaiian island Lanai, which he purchased in 2012, at the price of $300 million.
His biography on the Oracle site says that he races sailboats, flies planes, and plays tennis and guitar.
Ellison has a majority interest in the company, which is 41 percent, mostly in form of share buybacks. On September 10, the stock of the corporation surged by 40 percent due to the rush in the demands of its cloud services by artificial intelligence firms.
This stock was 39.7 percent higher, reaching a record high of $339.69 to make its largest one-day percentage gain since 1992. Gains will increase the company value around $278 billion adding up to approximately 948 billion, making Oracle a step closer to the much desired 1 trillion-dollar club, should gains materialize.
Its stock has already increased by 45 per cent in the current year, surpassing the so-called Magnificent Seven stocks and the overall S&P 500 index, as investors place high bets on AI-driven cloud companies.
The growth propelled his overall wealth to 393 billion, above Musk who occupies the rank of 385 billion, on the Bloomberg Billionaires Index. It is the largest one-day growth of the index.
In 2021, Musk made the first list of the richest people in the world and then was deprived of his position by Amazon.com Inc. CEO Jeff Bezos and LVMH proprietor Bernard Arnault. Last year he recovered it and had possessed it a little more than 300 days.
Ellison was a director on the Tesla board as well between 2018 and 2022 but resigned. He had 45 million split adjusted shares in advance to his departure as per Forbes.
Forbes also reported that he is 50 percent owner of media giant Paramount Skydance.
More importantly, Oracle says it can provide AI inferencing, models such as ChatGPT, Gemini, and Grok, and can execute them directly in its database stack, a feature not offered by hyperscalers so far. That neutral, integrated, and AI-enabled positioning has made previously-laggard Oracle a significant player in AI infrastructure.
The ripple effect
During one of those infrequent occasions when investor euphoria can be combined with the spectacle, Larry Ellison overtook Elon Musk to become the richest in the world due to the stock explosion. His wealth increased to approximately 100 billion to approximately 393-400 billion.
Not all are as happy as Mrs. Ellison: Analysts warn that the ambitious capex -Oracle plans to spend 35 billion to construct data-center and supply AI chips- may reduce free-cash-flow in the short run and stress margins.
The star of the show was AI, however, Oracle also described four multibillion-dollar deals with three customers during its latest quarter. It assisted in boosting first-quarter revenue by 12 percent to $14.93 billion with an increase in cloud revenue of 28 percent to $7.2 billion.
Piper Sandler and Bank of America analysts were no exception, increasing price targets and upgrading the stock- they described the AI-driven backlog as being too robust to be simply characterized as a blow-out.
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