The college dropout who is now the second-richest person in the world
Why is Oracle having a moment right now?
Oracle has invested billions of dollars over the past few years to become a provider of cloud infrastructure — offering computing power and storage over the internet. That has made the company a beneficiary of the market's enthusiasm for artificial intelligence as startups and other AI firms seek more capacity. Oracle's share price has nearly tripled since ChatGPT's public release in November 2022.
The stock jumped 5.7 per cent on July 15 after the US government eased some Biden-era restrictions, allowing chipmakers such as Nvidia and Advanced Micro Devices to export certain semiconductors to China. The decision was expected to ease tensions in the global chip supply chain, which bodes well for Oracle, a massive buyer of AI chips for its data centres.
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The latest gain came during a period of explosive growth for the company, which has seen its shares surge more than 90 per cent since late April due to strong revenues and key AI partnerships. Bloomberg reported earlier this month that OpenAI has agreed to rent an unprecedented sum of computing power from Oracle as it builds increasingly powerful AI tools.
Ellison also has benefited from a close relationship with President Donald Trump. Ellison has been a Trump supporter and Republican donor for years, and since retaking office in January Trump has rewarded Ellison by elevating Oracle on multiple occasions.
Ellison and Oracle are part of a $US500 billion AI infrastructure project called Stargate that Trump first touted in January.
Trump has also expressed support for Oracle to acquire a partial stake in TikTok's US business, which would give Oracle a share of one of the world's most popular consumer products. Oracle's bid for the popular video app owned by China's ByteDance, which includes several other potential investors, has been endorsed by Trump, but it hasn't been approved by leaders in Beijing.
What other businesses does Ellison own?
He has spent hundreds of millions of dollars on luxury real estate in the past decade, including properties in Malibu and Rancho Mirage, California; the Beechwood Mansion in Newport, Rhode Island; and an estate in the San Francisco Bay Area modelled on 16th century Japanese feudal architecture.
Ellison has been a major shareholder of Tesla and owned about 1.5 per cent of the company as of the carmaker's 2022 proxy statement. He stepped down from Tesla's board of directors in June 2022 and his stake hasn't been disclosed in subsequent proxies. He also was one of the largest outside backers of Musk's bid to purchase Twitter.
What are Ellison's interests outside of tech?
The software mogul has a history of lavish living. In a 2002 email to the tech founder, an accountant suggested that Ellison 'budget and plan' because his spending habits were becoming difficult to sustain, according to a January 2006 San Francisco Chronicle article. Ellison finances his lifestyle using debt and the proceeds from Oracle stock sales and dividends, which have amounted to more than $US12 billion since 2003, according to an analysis of data compiled by Bloomberg.
The avid sailor partially financed the BMW Oracle Racing team, which won the America's Cup in February 2010. He sold his stake in Rising Sun, a 138-meter megayacht, to billionaire David Geffen later that year. His Oracle Team USA defended the America's Cup in October 2013, defeating a team from New Zealand. He signed the Giving Pledge in 2010, promising to give away at least 95 per cent of his wealth to charitable causes.
How has Ellison been involved in Hawaii?
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Ellison's love for Hawaii, which began in his childhood, led to his $US300 million purchase of 98 per cent of the island of Lanai in 2012. There, he has partnered with David Agus — a doctor who treated Ellison's late best friend, Steve Jobs — to create Sensei, a chain of luxury wellness resorts focused on longevity. His personal connections have brought high-profile visitors including Musk, Tom Cruise and Israeli Prime Minister Benjamin Netanyahu to the once-sleepy island.
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