Larry Ellison has banner year as Oracle gains most since dot-com boom

It’s been a good year for Larry Ellison.

Oracle’s co-founder has gained roughly $75 billion in paper wealth as the software company he started in 1979 enjoyed its biggest stock rally since 1999 and the dot-com boom.

While the S&P 500 index has gained 27% in 2024, Oracle shares have shot up 63%, lifting Ellison’s net worth to more than $217 billion, according to Forbes, behind only Tesla CEO Elon Musk and Amazon founder Jeff Bezos among the world’s richest people.

At 80, Ellison is a senior citizen in the tech industry, where his fellow billionaire founders are generally decades younger. Meta CEO Mark Zuckerberg, whose net worth has also ballooned past $200 billion, is half his age.

But Ellison has found the fountain of youth both personally and professionally. After being divorced several times, Ellison was reported this month to be involved with a 33-year-old woman. And at a meeting with analysts in Las Vegas in September, Ellison was as engaged as ever, mentioning offhand that the night before, he and his son were having dinner with his good friend Musk, who’s advising President-elect Donald Trump (then the Republican nominee) while running Tesla and his other ventures.

His big financial boon has come from Oracle, which has maneuvered its way into the artificial intelligence craze with its cloud infrastructure technology and has made its databases more accessible.

ChatGPT creator OpenAI said in June that it will use Oracle’s cloud infrastructure. Earlier this month, Oracle said it had also picked up business from Meta.

Startups, which often opt for market leader Amazon Web Services when picking a cloud, have been engaging Oracle as well. Last year, video generation startup Genmo set up a system to train an AI model with Nvidia graphics processing units, or GPUs, in Oracle’s cloud, CEO Paras Jain said. Genmo now relies on the Oracle cloud to produce videos based on the prompts that users type in on its website.

“Oracle produced a different product than what you can get elsewhere with GPU computing,” Jain said. The company offers “bare metal” computers that can sometimes yield better performance than architectures that employ server virtualization, he said.

In its latest earnings report earlier this month, Oracle came up short of analysts’ estimates and issued a forecast that was also weaker than Wall Street was expecting. The stock had its worst day of 2024, falling almost 7% and eating into the year’s gains.

Still, Ellison was bullish for the future.

“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds,” Ellison said in the earnings release.

For the current fiscal year, which ends in May, Oracle…