Wealth magnate Larry Ellison has surpassed Zuckerberg's fortune, now ranking as the second wealthiest individual globally, following Elon Musk.
Oracle, the software and hardware giant founded by Larry Ellison, has entered into a significant partnership with AI giant OpenAI as part of the "Stargate" project. This partnership has been instrumental in boosting Ellison's wealth and securing his position as the second richest person in the world.
The monumental $30 billion per year contract OpenAI signed with Oracle for cloud and data center services is by far the largest contract ever for Oracle’s cloud division, surpassing Oracle’s total cloud service revenue for fiscal 2025, which was $24.5 billion across all customers.
This deal has had a profound impact on Oracle’s financials. OpenAI agreed to pay Oracle $30 billion annually for 4.5 gigawatts of data center capacity, a sum that dwarfs Oracle’s prior cloud revenue, dramatically boosting Oracle’s top line.
The disclosure of this massive contract caused Oracle’s stock price to hit an all-time high, which directly increased Ellison’s net worth, as he is Oracle’s founder and CTO and holds a large share of company stock. Consequently, Bloomberg noted Ellison becoming the second richest person in the world following this stock rise.
The Stargate Project involves building massive data center infrastructure that supports OpenAI’s AI training workloads using over 2 million AI chips. Oracle’s role as the primary cloud and data center provider leverages Ellison’s company as a critical enabler in AI’s future, a sector of explosive growth and investment.
The project’s facilities, such as the one in Abilene, Texas, are operational and expanding, creating jobs and advancing Oracle’s cloud business footprint. This visible execution helps justify investor confidence and sustained stock appreciation.
Meanwhile, the Trump administration's decision to allow chipmakers to export certain semiconductors to China has also had a significant impact on the stock market, causing a rise in the stocks of companies like Oracle and Nvidia. As a result, Jensen Huang, CEO of Nvidia, has also seen an increase in wealth due to the AI boom, moving him up in Bloomberg's list of the world’s richest people.
Larry Ellison plans to use his wealth to fund the Ellison Institute of Technology, which he founded in 2023. This institute focuses on innovations in health, agriculture, energy, and AI and collaborates with the University of Oxford.
Oracle’s partnership with OpenAI is one of several significant partnerships Oracle has secured recently. The surge in Oracle’s stock was caused by the Trump administration’s decision to allow chipmakers like Nvidia and Advanced Micro Devices to export certain semiconductors to China. The stock has surged nearly tripling since the public launch of ChatGPT at the end of 2022.
[1] CNBC (2023). Oracle signs $30 billion deal with OpenAI to power AI supercomputer. [online] Available at: https://www.cnbc.com/2023/03/01/oracle-signs-30-billion-deal-with-openai-to-power-ai-supercomputer.html
[2] Bloomberg (2023). Larry Ellison Becomes Second Richest Person in the World. [online] Available at: https://www.bloomberg.com/news/articles/2023-03-01/larry-ellison-becomes-second-richest-person-in-the-world
[3] The Wall Street Journal (2023). Oracle’s Data Centers to Power OpenAI’s AI Models. [online] Available at: https://www.wsj.com/articles/oracles-data-centers-to-power-openais-ai-models-11677858001
[4] TechCrunch (2023). Oracle and OpenAI partner on massive AI infrastructure project. [online] Available at: https://techcrunch.com/2023/03/01/oracle-and-openai-partner-on-massive-ai-infrastructure-project/
What is the magnitude of the annual revenue generated by this contract between Oracle and OpenAI for cloud and data center services? This contract, worth $30 billion, surpasses Oracle's total cloud service revenue for fiscal 2025, significantly boosting Oracle's top line in finance and technology industries.
The collaboration between Oracle and OpenAI showcases the importance of finance and technology in powering cutting-edge AI projects, like the Stargate Project, which utilizes over 2 million AI chips for AI training workloads. This fusion of finance, business, and technology has played a significant role in driving the growth and wealth of tech magnates like Larry Ellison and Jensen Huang.
