Due to a significant increase in the software giant’s stock, Larry Ellison, the co-founder of Oracle, has “overtaken Elon Musk as the world’s richest person.”
According to the Bloomberg Billionaires Index, Ellison’s wealth reached “$393 billion (£290bn) on Wednesday morning, surpassing Musk’s $385 billion (£284bn).”
Reports indicate that shares of Oracle saw a rise of “more than 40 percent” after the company provided a very strong forecast for its cloud infrastructure business and deals related to artificial intelligence (AI).
Ellison, who is 80 years old, has amassed his fortune over five decades, and his net worth is closely tied to Oracle’s performance. This marks the first time the billionaire has topped the global rich list.
Musk, who held the title for nearly a year, is currently facing challenges as Tesla’s stock price continues to decline. The electric vehicle company has been affected by investor concerns over the “US President Donald Trump administration’s rollback of EV initiatives and consumer backlash to Musk’s political involvement.”
Despite the recent drop, Musk’s fortune could still recover if Tesla’s board approves a proposed compensation package “worth over $1 trillion (£740bn),” which is linked to several ambitious growth targets.
At the same time, Oracle’s recent success has been driven by increasing demand for its data center infrastructure. In its quarterly earnings report on Tuesday, the company predicted a “77 percent jump in cloud revenue this year to $18 billion.”
The BBC reports that Safra Catz, Oracle’s chief executive, said the company recently signed “four multibillion-dollar contracts with AI customers and expects more deals in the coming months.”