Oracle co-founder Larry Ellison has claimed the title of the world's richest individual this Wednesday following a record-breaking surge in his company's stock on Wall Street, as reported by Bloomberg's Billionaires Index. Ellison, aged 81, saw his wealth soar by $101 billion within a few hours, reaching a staggering $393 billion by 10:10 a.m. local time in New York.
This development allowed him to surpass Elon Musk, the South African-American magnate who had dominated the list for nearly a year, with a fortune of $385 billion. The dramatic increase in Ellison's wealth was triggered by Oracle's announcement of securing several multi-billion-dollar contracts in its latest quarter, propelling its stock to rise by 38.15% at market open—a performance not seen since 1999.
Oracle's Strategic Move in Artificial Intelligence
The contracts highlight Oracle's growing involvement in the global race for artificial intelligence, instilling confidence among investors. This surge positions the company closer to a trillion-dollar market capitalization, based on CNBC's figures. Despite falling short of analyst expectations for the quarter, Oracle reported $455 billion in outstanding performance obligations, marking a 359% increase compared to the previous year.
Discrepancies in Wealth Rankings
While Bloomberg placed Ellison at the top of its billionaire index, Forbes' real-time list presents a different scenario, keeping Musk—co-founder of Tesla and SpaceX—in the lead with $440 billion, followed by Ellison at $406.3 billion. These differences arise from each outlet's unique calculation and update methodologies.
As Oracle makes waves in the artificial intelligence sector and Ellison ascends the ranks, the competition among tech titans continues to reshape leadership within the world's wealthiest elite.
Understanding the Wealth Shift Between Ellison and Musk
How did Larry Ellison surpass Elon Musk in wealth?
Larry Ellison overtook Elon Musk as the wealthiest person due to a significant rise in Oracle's stock following the announcement of several lucrative contracts, which greatly increased Ellison's net worth.
What contributed to Oracle's stock surge?
Oracle's stock surged due to the announcement of new multi-billion-dollar contracts and the company's increasing presence in the artificial intelligence market.
Why is there a discrepancy between Bloomberg and Forbes rankings?
The discrepancy between Bloomberg and Forbes rankings is due to their different methodologies for calculating and updating the net worth of billionaires.