Larry Ellison Overtakes Elon Musk as World's Richest After Oracle Stock Soars

Larry Ellison became the world's richest person Wednesday after Oracle Corp.'s shares surged following a blockbuster earnings report, pushing his estimated net worth to about $393 billion and eclipsing Elon Musk.

Oracle stock rose as much as 42% on Wednesday, on pace for the company's largest single-day gain since 1992, after executives disclosed multibillion-dollar contract wins and bullish guidance for cloud and artificial intelligence services. By mid-day, investors had traded more than 77 million Oracle shares.

Chief Executive Safra Catz told investors that Oracle signed four multibillion-dollar deals in the latest quarter and expects to secure several additional agreements in the coming months that she said will exceed a half-trillion dollars. Executives described a large backlog for AI-related services — analysts cited a roughly $455 billion backlog — and said the company’s cloud business will generate roughly $18 billion this year, a 77% increase from the prior year.

Executives offered a multiyear revenue outlook, saying cloud revenue could rise to about $32 billion, $73 billion, $114 billion and $144 billion over the next four years. Company statements and analyst commentary said Oracle’s cloud infrastructure sells at scale with relatively low operating costs and that high-value, long-term contracts could sustain cash flow into 2030.

Oracle has added major customers and partnerships in recent quarters, executives said, and its infrastructure supports leading AI models and platforms. The company has said it works with cloud and technology players including Amazon, Alphabet and Microsoft, and reports have linked Oracle to multibillion-dollar arrangements with AI developers. Media reports also said Oracle and OpenAI reached a five-year deal that could be worth as much as $300 billion; Oracle has not provided full public details of that arrangement.

Ellison, 81, co-founded Oracle in 1977 after leaving college and remains the company’s largest individual shareholder. Public filings and company disclosures indicate he owns a substantial stake in Oracle — more than 40% — and he also owns much of the Hawaiian island of Lana'i. The surge in Oracle’s share price on Wednesday added roughly $101 billion to Ellison’s estimated fortune.

Musk’s estimated net worth fell to about $385 billion as of Wednesday, according to raw market moves tied largely to Tesla stock. Musk’s wealth has swung this year with Tesla shares falling nearly 7% since January but rising roughly 59% since March, a volatility pattern that has periodically altered the ranking of the world’s richest individuals.

Traders and analysts attributed Oracle’s rally to strong demand for cloud-based AI services and to the size and duration of the contracts disclosed. Company leaders emphasized a shift toward large, recurring enterprise deals and said they expect additional multi-billion-dollar customer signings in the near term. Safra Catz said, "Over the next few months, we expect to sign-up several additional multi-billion-dollar customers."

Market reaction highlighted investor appetite for companies positioned to supply infrastructure and services for generative AI. Oracle’s stock move followed quarterly results that exceeded expectations and a narrative from management that the firm is winning large-scale customers at premium prices. Analysts noted that the combination of a sizable contract backlog and the low incremental cost of cloud infrastructure could translate into significant sustaining revenue through the end of the decade.

The reshuffling at the top of the wealth rankings underscores how closely the fortunes of the richest people remain tied to share prices and sector-specific momentum. In Oracle’s case, earnings disclosures and forward-looking contract announcements sent the company’s valuation sharply higher, producing the largest single-day change in an individual’s measured net worth in recent memory.

Investors will be watching Oracle’s subsequent disclosures and customer announcements for confirmation that the newly reported contracts convert into sustained revenue and cash flow, and whether the company can sustain the growth trajectory its executives outlined.