Larry Ellison Overtakes Mark Zuckerberg as World's Second-Richest Person with Net Worth of $251 Billion

Oracle co-founder Larry Ellison has surpassed Meta's Mark Zuckerberg as the second-richest person in the world, with a net worth of $251 billion, according to Bloomberg Billionaires Index. Ellison's wealth has increased by $59 billion this year, largely due to the rise in Oracle shares. He has been a billionaire since 1993, with most of his wealth (80%) in the form of Oracle stock and options.

Oracle co-founder Larry Ellison has surpassed Meta's Mark Zuckerberg as the world's second-richest person, with a net worth of $251 billion, according to the Bloomberg Billionaires Index. Ellison's wealth has increased by $59 billion this year, largely due to the rise in Oracle shares. He has been a billionaire since 1993, with most of his wealth (80%) in the form of Oracle stock and options [1].

Ellison's rise to the second-richest position is attributed to Oracle's stock performance, which has tripled since the ChatGPT launch, aided by new semiconductor export policies [1]. Since November 2022, when ChatGPT took the world by storm, Oracle’s shares have nearly tripled. In just the past three months, the stock has skyrocketed more than 90% [1].

On Tuesday, Oracle shares rose 5.7% after the U.S. government announced it would loosen export restrictions on semiconductors to China, giving companies like Nvidia and AMD a green light. That news sent Oracle soaring and gave Ellison just enough of a push to overtake Zuckerberg on Bloomberg’s index [1].

Oracle's recent earnings report showed quarterly revenues up 11% year-over-year, driven by a 14% increase in cloud services revenue [2]. The company is experiencing significant growth among enterprise customers, who are eager to tap into its cloud services for AI computing [2]. Oracle's stock price has doubled over the past two years, pushing the company's market value to around $650 billion [2].

Ellison's focus on AI and cloud infrastructure has also driven Oracle's growth. The company has secured tens of billions of dollars in cloud contracts and announced plans to develop gigawatts of data center power to meet the demands of AI powerhouses like OpenAI [1]. Earlier this month, OpenAI significantly expanded its capacity as part of the joint Stargate initiative with Oracle and SoftBank [1].

Oracle is competing against other cloud providers like Microsoft Azure, Amazon Web Services, and Google Cloud, which also offer cloud storage and computing services for businesses [2]. According to Synergy Research Group, Oracle captured 3% of the global cloud infrastructure market in the first quarter of the year, compared to the 63% collectively captured by Amazon Web Services, Google Cloud, and Microsoft Azure [2].

Oracle's expansion into Germany and the Netherlands is part of a broader $3 billion commitment, including $2 billion for Germany and $1 billion for the Netherlands, to bolster its AI and cloud infrastructure [3]. This move addresses the growing demand for AI and cloud services, aligning with Germany’s push for digital innovation. The investment aims to enhance Oracle’s cloud offerings, support data sovereignty, and help organizations accelerate AI adoption [3].

Ellison's newfound wealth has led him to amend his commitment to the Giving Pledge, choosing instead to focus more on the Ellison Institute of Technology, an interdisciplinary research institute he founded in 2023 in collaboration with the University of Oxford [1].

References:
[1] https://www.hindustantimes.com/world-news/us-news/what-is-larry-ellisons-net-worth-oracle-co-founder-beats-bezos-and-zuckerberg-as-world-s-second-richest-person-101752655751461.html
[2] https://www.entrepreneur.com/business-news/oracle-cto-larry-ellison-is-now-the-second-richest-person/494708
[3] https://www.tekedia.com/oracle-to-invest-2-billion-in-germany-to-bolster-ai-and-cloud-infrastructure/