David Ellison and Larry Ellison's Business Empire: What Recent Data Means for Investors

Oracle's Cloud Business and the Ellison Family's Media Ventures

Oracle's cloud business continues to be the centerpiece of its financial story in 2025. With Oracle Cloud Infrastructure now representing 77% of total revenue and growing at a 55% annual rate, the company's aggressive investments in AI and cloud infrastructure have been a major talking point. But with Oracle's stock down over 40% since September 2025 and its debt load climbing toward $105 billion, the big question for investors is whether these bold moves will pay off—or leave the company overextended. Meanwhile, Larry Ellison's influence extends beyond Oracle, with his latest bid to reshape Hollywood through a $8-billion Paramount deal backed by his son, David Ellison, now facing legal challenges. As the tech landscape shifts with AI-driven growth and regulatory pressures, Oracle—and the Ellison family—remain at the center of major market developments.

Larry and David Ellison's Key Business Moves and Investments

Larry Ellison has long been a master of high-stakes business maneuvers, and his recent move to back Paramount's $8-billion bid for Warner Bros. Discovery is no exception. The deal, which was expected to close in late 2026, was rejected by the board in favor of a $82.7-billion offer from Netflix. This rejection sparked immediate legal action from Larry and David Ellison, who now claim the auction was improperly managed. Beyond the media industry, the elder Ellison continues to shape Oracle's strategy, including recent partnerships with OpenAI and Google to deploy advanced AI models across Oracle's cloud infrastructure according to reports. Oracle also signed a $300-billion cloud computing agreement with OpenAI, underscoring its ambition to dominate the AI infrastructure space.

The younger Ellison, David, has also made headlines in the entertainment world. Alongside his father, he has been pushing for a new era in media production and distribution, using Oracle's cloud capabilities to streamline content delivery and reduce costs. For now, these moves remain under regulatory and legal review, but they suggest a long-term vision where entertainment and cloud infrastructure become increasingly intertwined as analysts note.

Oracle's Financials and Strategic Directions in 2025

Oracle's financial performance has been a rollercoaster in 2025. Despite strong cloud growth and a record $455 billion in remaining performance obligations (RPO), the stock has fallen more than 23% in November 2025 due to concerns over Oracle's heavy debt load and capital expenditures according to market analysis. The company has been investing aggressively in data centers and AI capabilities, with Oracle AI Database now being deployed on multiple hyperscaler platforms such as Google Cloud and Microsoft Azure according to a new report.

Oracle's Q2 FY2026 earnings are expected to be released on December 10, 2025, and analysts are predicting $16.191 billion in revenue and $1.169 in earnings per share according to earnings previews. That said, Oracle's debt load has climbed sharply to $104 billion, with projections suggesting it could reach $290 billion by 2028. Free cash flow turned negative for the first time since 1999, and credit default swap spreads have increased to 125 basis points—the highest in three years according to market intelligence. This raises questions about Oracle's ability to maintain its aggressive pace of investment without running into financial constraints.

What This Means for Investors: Opportunities and Risks

For investors, Oracle presents a classic case of high-growth potential balanced against growing financial risks. The company's cloud business is scaling rapidly, with Oracle Cloud Infrastructure (OCI) projected to grow from $10 billion in 2025 to $144 billion by 2030. Oracle's AI initiatives, including the integration of GPT-5 and Gemini AI models, are also creating new value propositions for enterprise customers. These innovations could help Oracle gain market share in a rapidly evolving cloud landscape where Amazon, Google, and Microsoft are also investing heavily.

However, Oracle's debt situation is a red flag. With its debt-to-EBITDA ratio projected to exceed 4x by 2027–2028, credit agencies like S&P and Moody's have revised Oracle's credit outlook to negative according to financial reports. This could lead to higher borrowing costs and reduce Oracle's flexibility to pursue new opportunities. Meanwhile, Oracle's P/E ratio of 29.31 is above its 5-year median of 22.38 according to financial analysis, which may reflect both optimism about its cloud growth and concerns about its financial leverage. Investors need to weigh whether the company's AI and cloud expansion will justify the risk of its current capital structure.

Looking Ahead: Earnings, Debt, and the AI Landscape

Oracle's upcoming Q2 FY2026 earnings report on December 10 will be a crucial moment for the company—and for investors. Analysts expect the report to include updated guidance on Oracle's backlog, AI integration, and debt management according to market forecasts. The company's ability to deliver strong revenue growth amid rising debt could sway investor sentiment significantly. If Oracle continues to outperform in its cloud and AI initiatives while managing its balance sheet carefully, it could rekindle investor confidence and spark a rebound in the stock.

Beyond Oracle, the broader AI infrastructure race is heating up. Alphabet, Amazon, and Microsoft are all increasing their AI build-out and cloud capacity in Q3 2025, and Oracle's ability to compete with them will depend on execution speed, pricing, and customer retention according to industry predictions. In the long run, Oracle's strategy could pay off if it can position itself as a preferred partner for enterprise AI adoption. But in the short term, the company must balance growth with financial discipline to avoid overextending itself.