Oracle's AI push slashes Larry Ellison's wealth by $200 billion, triggers rating downgrade

Oracle Corp., led by co‑founder Larry Ellison, has redirected its enterprise‑cloud platform toward large‑scale AI infrastructure after the 2022 generative‑AI surge. The company announced $90‑95 billion in AI‑related investments for fiscal year 2027 and secured major contracts with OpenAI, prompting a rapid expansion of high‑density compute clusters.

The strategic shift coincided with a sharp decline in Oracle’s share price, erasing more than one‑third of its market value this year. The loss translates to roughly $200 billion removed from Ellison’s personal fortune, which fell from a peak of about $388 billion in September 2025 to roughly $166 billion. In response to the heightened spending and a widening cash‑flow deficit, S&P Global downgraded Oracle’s credit rating from BBB to BBB‑, leaving it just one notch above junk status. The company now carries about $167 billion in debt, with a substantial portion of its order backlog tied to AI projects.

Analysts have warned that the aggressive AI push, coupled with political ties to the Trump administration that eased regulatory scrutiny, could expose Oracle to heightened financial risk if AI demand falters.