Larry Ellison, the co-founder of Oracle, is making headlines again. At 80 years old, he has become one of the richest people in the world, with a fortune of $371.7 billion. This puts him just behind Elon Musk. Oracle’s recent success in cloud computing and artificial intelligence (AI) has boosted its stock price by 35.9%. This article explores why Ellison is back in the spotlight, how Oracle is thriving, and what it means for the future.
1. Oracle’s Cloud Computing Success
Oracle, a company Ellison started in 1977, is known for its database software. In recent years, it has shifted focus to cloud computing. This move has paid off with several major deals:
- Big Clients: Oracle has signed contracts with major companies like Meta, Elon Musk’s xAI, and OpenAI. These deals have helped Oracle’s revenue grow to $455 billion.
- OpenAI Partnership: OpenAI, a leader in AI research, has agreed to pay Oracle $300 billion over five years for computing resources. This is one of the largest deals in Oracle’s history.
- Stock Price Surge: The success of these deals has driven Oracle’s stock price up by 35.9%. This has significantly increased Ellison’s wealth.
Oracle’s cloud services are now cheaper and more flexible than many competitors. For example, in 2020, Zoom used Oracle’s cloud to handle a huge increase in users during the pandemic. The service worked so well that there were almost no issues. Similarly, in 2022, TikTok moved the data of over 100 million U.S. users to Oracle’s cloud without any problems.
2. Ellison’s Smart AI Strategy
Oracle’s success in AI is a big reason for Ellison’s return to the top. Unlike competitors like Microsoft, Amazon, and Google, Oracle decided not to build its own AI chips. Instead, it relies on Nvidia, the global leader in AI processors. This choice has given Oracle access to more chips, which are critical for running AI systems.
- Nvidia Partnership: In 2024, Ellison met with Nvidia’s CEO, Jensen Huang, and Elon Musk at his sushi restaurant in Palo Alto. Ellison jokingly said, “Please take our money.” This led to Oracle getting more Nvidia chips, which helped them land big AI deals.
- Stargate Project: Oracle announced a $500 billion computing project called Stargate with OpenAI. This is a major step in Oracle’s AI growth.
By focusing on being an “AI landlord” and providing computing power to big clients, Oracle has found a unique place in the AI industry.
3. Ellison’s Influence in Hollywood
Ellison’s family now controls Paramount, a major media company. They are reportedly planning to bid for Warner Bros Discovery, another giant in entertainment. If successful, this could change the Hollywood landscape. Here’s what’s happening:
- Paramount’s Moves: Ellison’s son, David, is leading changes at Paramount. For example, CBS News, owned by Paramount, is shifting to the right. They hired Kenneth Weinstein, a Trump supporter, as an ombudsman. There are also rumors that Bari Weiss, from The Free Press, might take a leadership role.
- TikTok Connection: Oracle provides the tech infrastructure for TikTok in the U.S., which serves over 170 million users. This deal came after concerns about TikTok’s Chinese ownership and national security.
Ellison’s influence in media shows how his business decisions reach beyond technology.
4. A History of Bold Moves
Ellison has always been known for his bold and flashy style. He’s been called the “bad boy of Silicon Valley” for his brash tactics and lavish lifestyle. He owns a Hawaiian island, a yacht collection, and has supported Donald Trump for years. He even played himself in the movie Iron Man 2 in 2010.
Despite his colorful personality, Ellison has tackled tough technical challenges. Oracle’s early success came from dominating the database market in the 1990s. However, the company struggled when businesses moved to cloud computing in the 2000s. Ellison’s recent focus on AI and cloud services has brought Oracle back to the top.
5. Risks Ahead for Oracle
While Oracle’s success is impressive, there are risks. The company relies heavily on a few big clients, like OpenAI. If one of these clients faces financial trouble, Oracle could lose a lot of revenue. Analyst Chirag Dekate from Gartner pointed out that having only a few major customers is risky. If one leaves, it could create a “large hole” in Oracle’s business.
Additionally, Oracle does not own the land, data centers, or power plants it uses. It depends on partners for these, which adds uncertainty. The AI industry is also still figuring out how to make money, so Oracle’s long-term success is not guaranteed.
6. Ellison’s Lasting Impact
Ellison’s return to the top shows his ability to adapt and take risks. At 80, he remains a major player in technology and media. His decision to avoid competing with Nvidia and focus on providing computing power has paid off. Oracle’s stock is soaring, and Ellison’s wealth is close to $400 billion.
His influence in Hollywood and media, through Paramount and TikTok, shows he’s not just a tech leader. Ellison’s bold vision and willingness to take risks have kept him relevant 48 years after starting Oracle.
Conclusion
Larry Ellison’s journey from Oracle’s co-founder to one of the world’s richest people is a story of persistence and smart decisions. His focus on cloud computing and AI has brought Oracle back to the forefront of the tech industry. At the same time, his moves in media could reshape Hollywood. While risks remain, Ellison’s ability to stay ahead of the curve makes him a standout figure in business today.
