Could Larry Ellison, the co-founder of Oracle, challenge Elon Musk for the title of the wealthiest man after Oracle’s share jump?
The AI cloud business is skyrocketing, and it has no intentions of slowing down. The global increase in cloud demand has triggered a need for cloud infrastructure. That’s quite obvious.
And amidst this demand, Oracle has bagged not just one, but four multi-billion-dollar deals with three customers in the first quarter. Even OpenAI has agreed to purchase computing capacity from Oracle over the next five years.
This feat has triggered the company to reach a valuation of $1 billion.
Consequently, the rapidly increasing cloud demand has shifted the tech company’s own forecast from a 70% cloud growth to 77%. In line with this, Oracle is also predicted to complete sales worth $18 billion by the end of 2025. This could total its sales for the next four years to $144 billion.
This has kick-started a domino effect.
Oracle’s announcement of these massive cloud deals and sales forecast influenced its shares to soar 23%- a 12% growth in revenue totaling $14.93 billion. Its stocks have gained tremendous momentum, outpacing even the Magnificent Seven stocks.
But this rally had another significant impact-
Its market value leaped from $234 billion to approximately $913 billion. But its Chairman and co-founder, Ellison, witnessed his net worth rise by $100 billion to over $392.6 billion. With Musk’s net worth currently at $439.9 billion, it was a close call. And at one point, Ellison was ahead, too. However, as the market closed on Wednesday, Musk regained his leading position.
Where’s Oracle headed?
According to stakeholders, Oracle is gearing up to play a central role in similar massive deals with Microsoft, Amazon, and Google. Additionally, its role in OpenAI’s Stargate Project and partnership with Softbank will only offer a substantial boost.
As investors and business leaders continue to bet heavily on AI infrastructure, it’s expected that Oracle’s RPO will even surpass $500 billion. It’s created a ripple effect on the already rekindled AI boom.
Oracle is riding the waves of AI demand. And its multi-cloud revenue is only expected to touch new heights.
