Ellison falls in world’s richest ranking amid Oracle stock slump
In September, a dramatic, AI-driven rise in Oracle Corp. stocks briefly catapulted Larry Ellison to the status of the world’s richest individual, but a persistent drop since then has wiped out those gains and more, reducing his net worth by $130 billion.
As a result of Oracle’s decline, Larry Page, co-founder of Alphabet, has overtaken Ellison, marking the first time he has ranked second on the Bloomberg Billionaires Index.
Page, aged 52, who held the position of CEO at Google for two terms before the company transitioned to Alphabet, now has a net worth of $256.9 billion—his highest ever recorded.
He remains behind Elon Musk, whose wealth is currently estimated at $421.8 billion, while 81-year-old Ellison falls to third place with a net worth of $253.3 billion.
On September 10, Oracle’s stock soared by 36 percent after the company announced a significant rise in demand for its AI-focused cloud services, leading to an $89 billion increase in Ellison’s net worth, which marked the largest one-day gain in the history of Bloomberg’s wealth index.
However, just two months later, those profits had vanished.
Oracle’s AI initiative is closely tied to OpenAI, with the company forecasting potential revenues in the hundreds of billions from this collaboration in the years ahead, greatly exceeding the current earnings of the large language model company.
Investor sentiment has also been shaken as Oracle increasingly depends on borrowed funds.
The firm is planning a $38 billion bond issuance to finance the construction of AI data centers, while its net adjusted debt is already approaching $100 billion. Since their peak in September, Oracle’s shares have experienced a decline for six consecutive weeks, plummeting 39 percent from their all-time high to settle at $198.76 on Friday.
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