The Rise and Fall of the World’s Richest Person
Elon Musk, the founder of Tesla and SpaceX, has long been known as the world’s richest person. However, in a surprising turn of events, he briefly lost that title to Oracle co-founder Larry Ellison. This dramatic shift highlights the volatile nature of wealth in the modern tech-driven economy.
A Sudden Shift in Wealth
On Wednesday, Oracle’s stock experienced an extraordinary surge, propelling Ellison’s net worth to $383.2 billion. This increase was driven by Oracle’s impressive earnings report, which revealed a significant rise in demand for its data center capacity from AI customers. As a result, Oracle’s shares gained as much as 43% before closing higher by about 36%, marking the stock’s biggest single-day gain since 1992.
Ellison, who is Oracle’s largest individual shareholder, saw his wealth jump by $89 billion during this period. This marked the biggest one-day increase ever recorded by the Bloomberg Billionaires Index. For a brief moment, Ellison surpassed Musk, who had held the title of the world’s richest person for several years.
The Power of AI and Cloud Services
Oracle’s meteoric rise can be attributed to its growing role as a key provider of infrastructure for AI companies. The company has positioned itself as a leader in cloud services and database software, which are essential for powering the massive computing demands of AI technologies.
In July, Oracle announced a deal to provide ChatGPT’s parent company, OpenAI, with 4.5 gigawatts of electricity to power its AI software. This partnership has further solidified Oracle’s position in the AI market, contributing to the recent surge in its stock price.
Analysts at Melius Research noted that Oracle’s $455 billion backlog in demand for its AI services is “staggering.” This forecast has fueled investor confidence, leading to a significant increase in Oracle’s market value. The company’s market value gained roughly $244 billion, lifting it to approximately $922 billion.
The Tech Boom and Market Trends
As the AI boom accelerates, Oracle has become a major player in the tech industry. Its stock has risen 97% this year, outperforming many of its competitors. Analysts at Bank of America and Citi have raised their price targets for Oracle stock and upgraded it to “buy” from “neutral.”
This trend is not unique to Oracle. The eight most-valuable stocks in the S&P 500 are all tech stocks with some stake in building the AI-powered future. Companies like Nvidia and Microsoft have also seen significant gains, with Nvidia becoming the world’s most valuable company and Microsoft briefly surpassing the $4 trillion valuation mark.
Musk’s Resilience and Challenges
Despite losing the title of the world’s richest person, Musk remains a dominant figure in the tech world. He first captured the title in 2021 and has largely held onto it for the past few years thanks to his various investments in Tesla and SpaceX. Over the years, Musk has briefly lost the title twice, first in 2021 to LVMH CEO Bernard Arnault and in 2024 to Amazon founder Jeff Bezos.
Musk has faced numerous challenges, including regulatory scrutiny and public criticism. However, he has consistently bounced back, demonstrating resilience and adaptability. Recently, he was given a new pay package that could be worth close to $1 trillion once Tesla hits certain milestones.
Ellison’s Journey to Wealth
Larry Ellison’s journey to becoming one of the world’s richest people began in 1977 when he dropped out of college and helped establish Oracle. His vision and leadership have transformed the company into a global technology powerhouse.
The 81-year-old multibillionaire owns 98% of the Hawaiian island of Lana’i and is credited with reviving the Indian Wells tennis tournament in California, earning it the “fifth slam” nickname. Ellison has close ties with President Donald Trump, often appearing with him at the White House for various technology events and rewarding Oracle contracts.
He has also been linked to potential interest in acquiring TikTok, although those plans have not come to fruition.
The Future of Tech and Wealth
The recent events highlight the dynamic nature of wealth in the tech industry. As companies like Oracle, Nvidia, and Microsoft continue to thrive, they are reshaping the landscape of global wealth. The rise of AI and cloud services is driving unprecedented growth, creating new opportunities and challenges for investors and entrepreneurs alike.
While Musk may have temporarily lost his title, his influence and impact on the tech world remain significant. As the AI boom continues to accelerate, the competition for the title of the world’s richest person is likely to remain fierce.
