Oracle: Larry Ellison's fortune increases by $14 billion as shares rise on AI

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Oracle's founder and largest shareholder, Larry Ellison, jumped two spots on the Bloomberg Billionaires Index after the tech behemoth posted a bumper outlook this week.

Allison's net worth was $138 billion just yesterday, but overnight it jumped from $14 billion to $152 billion.

That's largely because the 79-year-old entrepreneur owns more than 40 percent of the cloud applications business, which saw its shares jump 13 percent after the company posted positive year-end financial results on June 11. .

The sudden increase in his wealth has seen Ellison overtake two other tech titans on Bloomberg's Billionaires Index: former Microsoft CEO Steve Ballmer and Sergey Brin, founder of Google's parent company Alphabet.

While both Ballmer and Byrne have seen their wealth grow so far this year ($21.2 billion and $27.2 billion, respectively), it's not enough to keep ahead of Ellison, whose fortune will only grow to $29.1 billion in 2024. has been a record high.

The reason their collective wealth has grown so rapidly is because of Silicon Valley's favorite term: artificial intelligence.

In a first for Oracle in its bumper outlook released Tuesday, CEO Safra Katz said the organization had signed “the largest sales contracts in our history for training large language models of AI.” Due to the high demand for

Katz, who previously held the role of CFO at Oracle, continued: “During fiscal 2025, I expect strong demand for AI to drive Oracle's sales… even more.

“In Q4 alone, Oracle signed more than 30 AI sales agreements worth more than $12.5 billion — including one with OpenAI to train ChatGPT in the Oracle Cloud.”

Along with the OpenAI deal, Oracle is also working more closely with Microsoft, the maker of ChatGPT and Google's backer. During the earnings call, Ellison said: “As customers continue to choose and use multiple clouds, hyperscalers like Microsoft and Google are responding by interconnecting their clouds.

“Oracle recently signed an agreement with Google to interconnect our clouds… We expect the Oracle database to be available in Google Cloud in September of this year.”

Alison isn't the only one.

Other people with big tech ties have also seen their wealth grow this year thanks to — you guessed it — AI. Across the board, the super-rich have seen at least $150 billion increase in their fortunes courtesy of tech.

Take Brin, who owns 41.8% of Alphabet's Class B stock — according to the company's 2023 proxy statement — and CEO Sundar Pichai, who owns 227,560 Class A shares. Both men have seen their fortunes rise thanks to the disruptive technology, with Pichai now close to being a billionaire thanks to his pay package and stock awards.

Alphabet's stock has rallied this year — up 28% for the year at the time of writing — but bounced especially when earnings shared positive AI news. On April 25, in one instance, the company announced its Q12024 results and said it was “keeping up well with our Gemini era” and continuing to establish itself as an AI leader.

The market liked what it heard, and shares opened 15% higher after the announcement than earlier in the morning.

Ballmer and Microsoft co-founder Bill Gates have a similar story. In April, Gates' wealth grew by $2 billion with AI being mentioned 50 times, as CEO Satya Nadella revealed new AI deployments. He said: “We have the most powerful AI infrastructure, and are using it to train large models with our partner, OpenAI, as well as Nvidia and leading AI startups like Adept and Inflection.”

Shares of Microsoft posted their best single-day percentage gain since November 2022 after the call. Analysts also pointed out that the shares hit a milestone — they had never before risen above $19.77 in a single session, until the end. of April

Elsewhere, Meta founder Mark Zuckerberg's wealth has grown thanks to a combination of his “performance years” and his forays into artificial intelligence. In January, Zuckerberg outlined several steps to streamline the company and in February outlined a broader artificial intelligence strategy — since then, according to Bloomberg's Billionaires Index, his wealth has grown from $63 billion to $181 billion. It has become a billion.

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