Larry Ellison, who briefly topped the global rich list three months ago, saw his net worth plummet by $24.9 billion in a single day as Oracle (ORCL.US) shares suffered a historic crash.
On Thursday, Oracle’s stock tumbled nearly 11% after its latest earnings report revealed skyrocketing capital expenditures for AI data center investments, while revenue conversion lagged investor expectations. This sparked concerns over the commercialization pace of its AI infrastructure. The drop also pushed the 81-year-old Ellison from second to third place on the Bloomberg Billionaires Index.
Ellison’s massive paper loss coincides with his pledge to back his son David Ellison’s $108 billion bid for Warner Bros. Discovery (WBD.US). After Paramount Skydance (PSKY.US), backed by Ellison, lost to Netflix in the battle for Warner Bros. Discovery, the company this week opted to directly offer shareholders a $30-per-share all-cash bid. The financing includes $41 billion in new equity, supported by the Ellison family and RedBird Capital.
Paramount hinted that $30 may not be the final offer, with expectations of a prolonged tug-of-war with Netflix.
Despite Ellison’s wealth remaining substantial enough for multiple Warner acquisitions, the deal’s structure could strain his liquidity. Bloomberg estimates he holds about $34.8 billion in cash and equivalents, largely from past Oracle stock sales. However, a portion is tied up in illiquid assets like real estate and art, making his readily available funds unclear.
Additionally, Oracle’s proxy filing as of September 19, 2025, shows roughly 30% of Ellison’s Oracle stake is pledged for personal debt, up about 25% from last year.
Even after Thursday’s plunge, Ellison’s Oracle holdings are still valued at $202.8 billion, but skepticism over its AI strategy is growing.
Though Oracle has invested in cloud infrastructure for over a decade, it only emerged as a key AI player in recent years. This year, it announced a $300 billion compute partnership with OpenAI and joined the $500 billion Stargate hyperscale data center project.
Yet, last quarter’s capital expenditures surged to $12 billion, unsettling investors as spending outpaces monetization. Oracle’s debt-default insurance costs have hit a two-year high, with Morgan Stanley forecasting adjusted net debt could nearly triple to around $1 trillion by fiscal 2028.
On September 10, Oracle shares soared 36%—their biggest single-day gain since 1992—after stellar earnings and raised cloud guidance. Ellison’s fortune jumped $89 billion that day, briefly making him the world’s richest.
But Oracle’s stock has since fallen about 40% from its peak. Despite the recent plunge, Ellison remains $94.9 billion wealthier than a year ago, underscoring the volatility and transformation pressures facing tech giants in the AI capital-intensive cycle.