Larry Ellison Tops Musk as World’s Richest Man
In a dramatic and swift reshuffling at the apex of global wealth, Oracle co-founder Larry Ellison has officially surpassed Tesla CEO Elon Musk to become the world’s richest person. The seismic shift was powered by a phenomenal surge in Oracle’s stock price, driven by the company’s commanding new role in the artificial intelligence revolution.
The change in ranking occurred after Oracle released a stunningly strong earnings report on Tuesday evening, revealing immense demand for its AI-related services. This news sent Oracle (ORCL) shares skyrocketing by 41% on Wednesday, marking the stock’s largest single-day gain since 1992. This incredible rally added an astounding $101 billion to Ellison’s personal fortune in a single day.
According to figures reported by Bloomberg and Forbes, Ellison’s net worth soared to between $393 billion and $395.7 billion, comfortably overtaking Musk’s fortune, which stands at approximately $385 billion. The surge also pushed Oracle’s market capitalization to the cusp of $1 trillion, a staggering leap from its valuation of just under $700 billion at Tuesday’s market close.
The Engine of Wealth: AI Infrastructure
The catalyst for this financial upheaval is Oracle’s successful pivot to becoming an indispensable backbone for the AI industry. The company reported a “staggering” $455 billion backlog in demand for its AI services, according to Melius Research analyst Ben Reitzes.
Oracle’s CEO, Safra Katz, announced that the company had signed four multi-billion dollar contracts in the last quarter alone, with more expected. This high-powered demand stems from Oracle’s ability to provide the massive computing power essential for AI development. A landmark deal announced in July to provide OpenAI, the parent company of ChatGPT, with 4.5 gigawatts of electricity underscores Oracle’s critical position in the ecosystem. As one analyst noted, companies like Oracle and Microsoft are no longer just software companies; they are “AI cloud infrastructure stocks that happen to sell software too.”
A Volatile Throne
Elon Musk, who first claimed the title of world’s richest person in 2021, has largely held the position for the past few years, buoyed by his investments in Tesla and SpaceX. However, his reign has seen brief interruptions. He was temporarily surpassed by LVMH CEO Bernard Arnault in 2021 and by Amazon founder Jeff Bezos earlier in 2024. After each dip, Musk had managed to reclaim the top spot until now.
Ellison, 81, who co-founded Oracle in 1977 after dropping out of college, has long been a fixture among the world’s wealthiest individuals but now sits at the very top. As the company’s largest individual shareholder, Chairman, and Chief Technology Officer, his wealth is directly tied to Oracle’s strategic success in the booming AI market, a sector that has also propelled Nvidia to become the world’s most valuable company with a valuation north of $4 trillion. The monumental shift demonstrates once again how the artificial intelligence gold rush is rapidly redefining wealth and power in the 21st century.