Larry Ellison’s Wealth Surges Amid Oracle’s A.I. Boom, Briefly Overtakes Jeff Bezos

Edited by: TJVNews.com

Larry Ellison, founder and chairman of software giant Oracle, has become one of the biggest beneficiaries of the ongoing artificial intelligence (A.I.) boom. According to Observer.com, Ellison, who is now the world’s third richest person, briefly surpassed Amazon founder Jeff Bezos as the second wealthiest individual on the planet, trailing only Tesla and SpaceX CEO Elon Musk. Ellison’s meteoric rise in net worth, which currently stands at an estimated $203.5 billion, has been fueled by Oracle’s strategic positioning in the rapidly growing A.I. market.

Ellison’s recent financial windfall is largely tied to Oracle’s exceptional stock performance, driven by unprecedented demand for data centers, which are critical to powering A.I. models like those used by OpenAI’s ChatGPT. Observer.com reported that Oracle recently reported a 7 percent year-over-year increase in quarterly revenue, reaching $13.3 billion. Particularly noteworthy was the company’s cloud services division, which saw a staggering 21 percent increase in revenue, totaling $5.6 billion. This surge in cloud services revenue has significantly boosted Oracle’s stock price, which has jumped more than 47 percent over the past year and nearly doubled since the start of 2023.

Oracle’s success in the cloud services sector is closely linked to its focus on A.I. infrastructure. As more businesses rush to integrate A.I. technologies, Oracle’s offerings have become indispensable, further driving up its share price and, by extension, Ellison’s wealth. As Observer.com highlighted, these financial achievements have not only elevated Ellison’s standing but also reinforced Oracle’s position as a key player in the global A.I. race.

A significant component of Oracle’s growth in the A.I. space is its aggressive expansion of data center capacity. During a recent earnings call, Ellison outlined Oracle’s ambitious plans for the future, stating that the company currently has 162 data centers either in operation or under construction globally. According to Observer.com, Ellison revealed that Oracle aims to eventually expand this number to between 1,000 and 2,000 data centers, reflecting the company’s long-term vision of becoming a dominant force in A.I. infrastructure.

One of Oracle’s largest data centers, boasting an 800-megawatt capacity, will be equipped with “acres” of Nvidia’s graphics processing units (GPUs), Ellison told analysts. Nvidia’s GPUs are considered essential for training A.I. models, and Oracle’s focus on securing this cutting-edge hardware underscores its commitment to supporting the future of A.I. technologies. As Observer.com pointed out, the demand for Nvidia’s GPUs has surged as Big Tech companies race to deploy increasingly sophisticated A.I. products, making data center expansion a critical aspect of Oracle’s business strategy.

Ellison’s recent remarks also shed light on Oracle’s collaboration with other industry heavyweights, including Tesla CEO Elon Musk and Nvidia CEO Jensen Huang. During an Oracle financial analyst meeting on September 12, Ellison recounted a dinner with Musk and Huang, where both he and Musk were “begging” Huang for more A.I. chips, highlighting the intense competition to secure Nvidia’s highly sought-after GPUs. “Please take our money. No, take more of it. You’re not taking enough, we need you to take more of it,” Ellison said, according to Observer.com.

This anecdote underscores the high demand for A.I. hardware and the lengths to which tech companies are willing to go to secure these resources. Nvidia’s GPUs are critical to building and training the advanced A.I. models that are driving innovation across industries, and Oracle’s access to these chips is pivotal to its A.I. strategy. As Observer.com noted, the race to acquire more A.I. chips reflects the broader scramble among tech companies to establish themselves as leaders in the emerging A.I. landscape.

In a recent move, Oracle has partnered with Amazon Web Services (AWS), allowing AWS customers to access Oracle’s robust database offerings. According to Observer.com, this strategic partnership is part of a broader effort by Oracle to bolster its cloud presence and accelerate the growth of its database business.

“We believe our cloud partnerships with AWS and Microsoft and Google will turbocharge the growth of our database business for years to come,” Ellison said during an earnings call, as reported by Observer.com. These partnerships with major cloud providers like Microsoft Azure and Google Cloud position Oracle to play a pivotal role in the global cloud infrastructure race, making its database services more accessible and integrated across different platforms.

Ellison, who co-founded Oracle in 1977 and served as CEO until 2014, has consistently steered the company toward innovation. His latest efforts to partner with AWS, Microsoft, and Google draw attention to his vision for Oracle’s long-term growth, particularly as the demand for cloud-based databases and A.I.-powered technologies continues to surge, as per the information contained in the Oberver.com report.   Ellison is confident these collaborations will significantly boost Oracle’s database business, leveraging the infrastructure of some of the world’s largest cloud service providers.

Beyond cloud partnerships, Ellison remains at the forefront of Oracle’s expansion into A.I. technologies. The billionaire has frequently spoken about the transformative potential of generative A.I. in various industries, including agriculture and surveillance. As he highlighted at Oracle’s financial analyst meeting, A.I. can be harnessed to improve surveillance, enhance public safety, and optimize agricultural outputs via drone technology. As Observer.com notes, Ellison’s enthusiasm for A.I. is driven by its ability to create a more efficient and transparent world, with far-reaching societal benefits.

“Citizens will be on their best behavior because we’re constantly recording and reporting everything that’s going on,” Ellison said, envisioning a future where A.I.-enabled cameras monitor public spaces, improving accountability. He also pointed out how A.I. would ensure constant supervision of police officers via body cameras, which could alert the authorities to any misconduct. As Observer.com reported, Ellison believes that “the world is going to be a better place as we exploit these opportunities and take advantage of this great technology.”

While Ellison is bullish on A.I., he acknowledges that the technology landscape remains fiercely competitive. According to Observer.com, Ellison compared the current A.I. boom to a “Formula 1” race, where only one company or leader is likely to emerge as the dominant player. “There’s really one winner. Someone’s going to be better at this than anyone else, and multiple people are trying,” he remarked, recognizing the fierce rivalry in the race to control the future of A.I. innovation.

Ellison’s strategic investments in A.I., combined with Oracle’s cloud partnerships, reflect his determination to ensure Oracle remains at the forefront of this technological revolution. The recent partnership with AWS represents a crucial step in Oracle’s growth strategy, offering Oracle databases on the world’s most widely adopted cloud platform. By positioning Oracle as a central player in the cloud and A.I. ecosystems, Ellison is preparing the company to capitalize on the technological shifts that will define the future of industries ranging from agriculture to law enforcement.

While A.I. and cloud computing dominate Ellison’s business strategy, he has also made notable moves in the media industry. Recently, Ellison made headlines for backing his son David Ellison’s media company, Skydance, in its acquisition of Paramount (PARA). As Observer.com reported, Ellison’s financial support of the acquisition positions him to have an influential role in the takeover as a major shareholder.

This foray into media shines a spotlight on Ellison’s broad business interests, which span beyond tech and cloud computing. However, his primary focus remains on driving Oracle’s growth in the A.I. and cloud sectors. Despite his involvement in media, Ellison remains deeply committed to Oracle’s technological ambitions and the company’s role in shaping the future of A.I. and cloud computing.