Larry Ellison, Oracle’s Chief Technology Officer, overtook Elon Musk to become the world’s richest person on Wednesday – albeit temporarily. The current wealth gap between these titans stands at a relatively modest one billion pounds, considering their enormous net worth: Musk maintains $384.2 billion whilst Ellison holds $383.2 billion.According to an AP report, these astronomical sums could sustain 5 million average American households for an entire year, equivalent to Florida’s population taking a complete break from work. Alternatively, the amount matches South Africa’s annual gross domestic product.
When Larry Ellison overtook Elon Musk as world’s richest
In the initial minutes of trading, Oracle Corp.’s share price increased dramatically, momentarily elevating its co-founder Ellison above the long-standing leader Elon Musk in the world’s wealthiest persons rankings.However, the volatile nature of the stock market restored Musk to the position of the world’s richest person by day’s end, according to Bloomberg, as Oracle’s shares settled lower than their earlier peak.At Wednesday’s close, Oracle shares rose 36% to $328.33, whilst Tesla showed minimal movement, increasing less than 1% to $347.79.The temporary shift in rankings occurred following Oracle’s exceptional earnings report, which highlighted substantial customer orders amidst increasing competition in artificial intelligence technology.Larry Ellison ascended to become the wealthiest individual globally, surpassing Elon Musk, who had held this position since four years prior. Musk’s position was primarily attributed to his ownership in Tesla, an electric vehicle manufacturer that is currently experiencing a decline.Tesla’s shares have declined by 14% in the current year, displaying a contrasting trajectory to Oracle’s performance. Musk maintains control over numerous private enterprises, including the spacecraft manufacturer SpaceX, his AI venture xAI, and X (previously known as Twitter).Ellison’s 40% ownership in Oracle resulted in his wealth increasing by $100 billion within thirty minutes of market opening! The previous evening, post market closure, Oracle disclosed securing contracts exceeding $300 billion, including agreements with “OpenAI, Meta, Nvidia and Musk’s xAI”. The company projected its cloud infrastructure revenue to increase by 77% to $18 billion this fiscal year, followed by an anticipated rise to $144 billion over the subsequent four-year period.Ellison said in an earnings discussion how the company would generate revenue not only from AI development infrastructure but also from operating AI systems across various sectors, including manufacturing, pharmaceutical research, financial trading, and business automation.The substantial increase in Ellison’s wealth on Wednesday morning reflected market confidence in automation replacing human workforce, positioning Oracle to capitalise on this transformation.“AI Changes Everything,” declared the 81-year-old during the discussion.Meanwhile, Tesla’s chief executive faces challenges in persuading investors despite similar aspirations. Following a significant decline in electric vehicle sales early this year, the anticipated recovery hasn’t materialised. He has attempted to redirect attention towards Tesla’s robotics division and AI developments in autonomous vehicles.Despite his continued optimism about Tesla’s prospects, difficulties persist. The company experienced a 40% decline in European Union sales during early summer, marking seven consecutive months of reduction, partly due to his social media support for far-right politicians. US market share has also declined as customers responded negatively to his alignment with Donald Trump.
