Richest Person Title Bounces Between Tech Tycoons
There's been a tug-of-war between two titans of technology over the title of the world's richest person. Larry Ellison, the co-founder of a major software company, briefly dethroned Elon Musk, before Musk reclaimed the title by the day's end.
A Seesaw Battle
This flux in the rankings was triggered by an unexpected climb in the stock value of Ellison’s software company. The company’s shares skyrocketed by over a third, momentarily tipping the scales in Ellison's favor. However, the volatile nature of the stock market allowed Musk to regain his position by the close of trading.
The Billionaire Bracket
Currently, there is only a billion-dollar difference between the two, with Musk at $384.2 billion and Ellison at $383.2 billion. This might sound like a minuscule amount, considering the astronomical figures. To put into perspective, their vast fortunes could financially support the lifestyles of five million average American families for a full year, roughly equivalent to the entire population of Florida.
The Earnings Report
The temporary shift in the wealthy hierarchy was primarily due to an impressive earnings report from Ellison's software company. The company's revenue was bolstered by multi-billion dollar orders from clients in the intensifying artificial intelligence market.
Musk's Journey
Musk claimed the title of the world's wealthiest individual for the first time four years ago, thanks to his lucrative stake in a popular but currently struggling electric car manufacturer. Despite the company's stock diving 14% this year, Musk's wealth is also supplemented by several private companies, including a rocket manufacturer, an AI firm, and a social media platform.
Ellison's Ownership
Ellison holds approximately 40% of his software company, and the surge in the company’s stock added a whopping $100 billion to his net worth within half an hour of market opening. The company had also recently announced striking more than $300 billion in new deals, projecting a 77% increase in revenue from its cloud infrastructure business this fiscal year.
AI Changes Everything
Ellison has expressed that the company will not only profit from the development of AI systems but also from their daily operations. These AI systems could be used to run robots in factories, design drugs in labs, automate legal and sales work at companies, and much more. His increase in wealth signifies investor confidence in the future role of AI.
Tesla's Struggles
On the other hand, Musk's electric car company has been facing difficulties convincing investors of a bright future. Despite promising a significant bounce-back in electric car sales after a dip earlier this year, the anticipated recovery has not materialized. Musk has been attempting to divert investor's attention to the company's AI advancements and its robot-making division.
However, the company's sales have plunged in the European Union, and it has been losing market share in the U.S. as well. This decline is partly due to consumer dissatisfaction with Musk's political affiliations. Despite these challenges, Musk continues to promote the company's potential.
At the close of Wednesday, Ellison's company's stock ended with a 36% increase, while Musk's company saw a less than 1% rise.