Larry Ellison’s wealth falls following Oracle stock decline

Larry Ellison’s net worth has fallen to an estimated $192.6 billion, dropping him to the position of the world’s eighth-richest person. This decline follows a significant loss in Oracle’s market valuation, which fell from a peak of $877.1 billion in September to $433.5 billion as of Friday. Ellison now ranks behind Nvidia CEO Jensen Huang in global wealth rankings.

The decline in Ellison’s fortune is tied to Oracle’s stock performance, which saw a sharp drop between June and July. Investors have expressed concerns regarding Oracle’s plan to raise $40 billion through debt and equity to fund massive capital expenditures. The company projects spending will exceed $95 billion by fiscal 2027, representing a 162% surge in capital outlays aimed at expanding AI infrastructure.

Analysts from Bank of America and Melius Research have highlighted risks associated with these spending plans, noting that a significant portion of Oracle’s performance obligations is linked to OpenAI. There are concerns regarding whether the company can sustain these costs if demand for computing capacity from firms like OpenAI or Anthropic continues to escalate. Additionally, S&P Global recently downgraded Oracle’s credit rating, citing potential financial strain from its rapid AI infrastructure expansion.