Oracle Surges on AI Cloud Deals, Ellison Nears Top Spot

• Oracle’s stock jumped 43% after announcing major AI cloud contracts, boosting its valuation and propelling Larry Ellison toward becoming the world’s richest.

Cloud Momentum Drives Record Valuation

Oracle’s stock soared nearly 43% on Wednesday, reaching an all-time high of $345.49 and marking its largest single-day gain since 1992. The rally followed the announcement of four multi-billion-dollar cloud infrastructure contracts, reflecting growing demand from AI firms like OpenAI and xAI. These deals pushed Oracle’s market valuation close to $969 billion, placing it within reach of the trillion-dollar threshold. Investors responded positively to the company’s positioning as a key provider of computing power for AI workloads.

CEO Safra Catz stated that Oracle expects to onboard several more high-value customers in the coming months. Remaining performance obligations (RPO) are projected to exceed $500 billion, indicating strong long-term revenue potential. The company’s cloud partnerships with Amazon, Alphabet, and Microsoft have also expanded, allowing clients to run Oracle Cloud Infrastructure (OCI) alongside native services. Revenue from these collaborations rose more than sixteen-fold in the first quarter, underscoring Oracle’s growing relevance in hybrid cloud environments.

Ellison’s Net Worth Climbs Amid Market Rally

Larry Ellison, Oracle’s co-founder and chairman, saw his net worth increase by approximately $102 billion, reaching around $395 billion according to Forbes. This surge places him just behind Elon Musk in the global wealth rankings, with analysts suggesting he may soon take the lead. Ellison’s 41% stake in Oracle is the primary driver of his fortune, which has grown in tandem with the company’s stock performance. His long-term strategy of retaining shares and investing in AI infrastructure has paid off significantly.

Oracle’s rise has also lifted shares of semiconductor suppliers like Nvidia, Broadcom, and AMD, which provide hardware for data centers. These companies saw gains between 3.8% and 10.6% following Oracle’s earnings report. Competitor CoreWeave experienced a 20% increase, reflecting broader investor enthusiasm for AI-related infrastructure. Oracle’s involvement in the Stargate project, a $500 billion initiative led by SoftBank and OpenAI, further solidifies its role in the future of large-scale AI operations.

Strategic Positioning in the AI Cloud Race

While Microsoft, Amazon Web Services, and Google Cloud currently dominate with a combined 65% market share, Oracle is gaining ground through targeted partnerships and infrastructure investments. The company’s focus on AI workloads has differentiated it from traditional cloud providers, attracting clients seeking specialized computing capabilities. Analysts believe Oracle’s contributions to Stargate and its support for Musk’s xAI startup will drive additional growth. These moves position Oracle as a central player in the evolving AI ecosystem.

Oracle’s stock is now trading at over 33.34 times its 12-month forward earnings estimates, slightly above Amazon and Microsoft. This valuation reflects investor confidence in Oracle’s ability to scale its cloud business and capture a larger share of AI spending. The company’s pivot from enterprise software to AI infrastructure marks a significant shift in its business model. If current trends continue, Oracle could become one of the few firms to reach a trillion-dollar valuation through cloud and AI innovation.