Oracle’s stock surged over 40% on Wednesday, reaching a record high and bringing the company’s total market value close to $1 trillion. This jump significantly increased the wealth of co-founder Larry Ellison, narrowing the gap between him and the world’s richest person, Elon Musk.
The rise was fueled by Oracle announcing several multi-billion dollar contracts related to the booming demand for artificial intelligence (AI) computing power. Companies like OpenAI are investing heavily in cloud infrastructure to train and run their advanced AI models.
At one point, Oracle’s shares climbed to nearly $345.70. This added about $234 billion to its market cap, pushing its total value to around $913 billion. The momentum increased further after a report that OpenAI had signed an enormous $300 billion deal with Oracle spread over five years.
Thanks to his 41% stake in Oracle, Ellison’s net worth grew by an estimated $100 billion. While Musk is still wealthier, the difference between them is now much smaller. Investors are watching to see if Ellison could eventually become the world’s richest person if Oracle’s stock continues to perform well.
Investors are increasingly betting on companies that provide the crucial infrastructure for AI. Oracle’s stock is now up 45% this year, outperforming the broader market. CEO Safra Catz stated she expects to sign several more multi-billion dollar contracts soon.
While the cloud market is still dominated by Microsoft, Amazon (AWS), and Google, Oracle has successfully competed for the remaining business. It has gained attention by partnering with its rivals, allowing its cloud infrastructure to work alongside theirs. Revenue from these partnerships grew massively last quarter.
Oracle is also involved in major external projects, like the potential “Stargate” data center initiative led by SoftBank and OpenAI, which could invest up to $500 billion. The company also counts Elon Musk’s AI company, xAI, among its clients.
The positive news also boosted shares of chipmakers like Nvidia and other cloud companies, as the industry expects continued growth driven by AI demand.
At its current price, Oracle’s stock is valued similarly to other tech giants like Amazon and Microsoft, showing that investors are confident in its future growth.