Larry Ellison slid to the world’s eighth-richest person on Friday, shedding $6 billion as Oracle shares continued a monthslong decline.
The $104 Billion Wealth Reversal From June to August
Oracle co-founder Larry Ellison saw his net worth fall to $192.6 billion as of market close Friday, according to Forbes data. The figure marks a $104 billion decline from his peak on June 2, when he ranked as the world’s second-richest person.
Shares of Oracle plunged roughly 54% between hitting a high of just over $250 on June 1 to a low of $114.50 on July 28, before rebounding slightly to $150.52 by the end of the week. The market contraction erased significant portions of the company’s valuation, which hit $433.5 billion as of Friday, down from a peak of $877.1 billion in September.
While Ellison’s fortune climbed by $2.9 billion on Monday amid a modest 2.6 per cent share increase to about $151, the broader downward trend left him at No. 8 on the wealth index, just behind Nvidia CEO Jensen Huang at $194.4 billion, according to Forbes.
Cloud Commitments and Capital Expenditure Pressures
The volatility in Oracle’s stock traces back to aggressive financial projections and heavy spending on artificial intelligence infrastructure.
Subsequent investor concerns centered on how the database giant would fund its capital expenditures, which surged 162% to $55.7 billion, with total spending projected to top $95 billion by fiscal 2027. Oracle also told investors it expected to raise $40 billion through debt and equity financing.
Jacob Bourne, an analyst at eMarketer, told Reuters that broader concerns remain regarding how Oracle will fund capital spending to match its revenue projections. Separately, Bank of America analysts cautioned in a note that more than 50% of Oracle’s remaining performance obligation ties back to OpenAI.
Melius Research analysts noted that Oracle’s spending plans may face pressure if firms like OpenAI or Anthropic demand higher computing capacity than initially anticipated. S&P Global downgraded Oracle’s credit rating in July, arguing that while the company’s expanding AI infrastructure business could pay off, the high costs risk weakening its financial position.
The Paramount Deal and Warner Bros. Discovery Takeover Pause
Beyond enterprise software, Ellison’s financial commitments extend into media acquisitions led by his son, David Ellison, who serves as the chief executive of Paramount Skydance. Larry Ellison agreed to provide an irrevocable personal guarantee of $40.4 billion to finance Paramount’s $110 deal for Warner Bros. Discovery in December.
That transaction has since been paused after Paramount agreed to push its acquisition timeline to 2027. The delay follows a lawsuit filed by 12 states arguing that the merger would result in higher prices, lower quality, and less content for film and television consumers.
Philanthropy and Oxford Developments
Amid his corporate and financial shifts, the 81-year-old executive continues to advance large-scale philanthropic projects.
The Ellison Institute is behind a multi-billion-pound development at the Oxford Science Park off Grenoble Road. In addition, Ellison purchased the Eagle and Child for about £8m with plans to open it for scholars and visitors.