Larry Ellison’s ‘Complete Gibberish’ on Cloud Computing Turns Oracle into AI Powerhouse, Making Him Second Richest Man
August 24, 2025 — Times of India Tech Desk
Larry Ellison, the co-founder of Oracle Corporation, once dismissed the concept of cloud computing as "complete gibberish." Today, paradoxically, it is this very technology that has propelled him to become the world’s second-richest person, surpassing tech giants Jeff Bezos and Mark Zuckerberg. According to the Bloomberg Billionaire Index, Ellison’s net worth presently stands at an astounding $288 billion, just behind Elon Musk’s $337.9 billion.
From Skepticism to Leadership in Cloud Infrastructure
In 2008, Ellison openly mocked the emerging cloud computing trend. However, under the visionary leadership of Oracle’s CEO Safra Catz and bolstered by Ellison’s renewed commitment, Oracle has transformed itself from a traditional database provider into a dominant force in cloud infrastructure, especially fueled by the rapid advancements in artificial intelligence (AI).
The surge in AI technologies has drastically increased the demand for high-powered computing and vast storage capabilities — areas where Oracle has invested heavily. Oracle’s cloud infrastructure is now a critical backbone for industry leaders, including OpenAI, the creator of ChatGPT, and Elon Musk’s AI venture, xAI.
Market Rally and Record-Breaking Growth
Oracle’s stock witnessed a significant 13% jump in June 2025, marking its largest one-day gain in a year and catapulting Ellison’s wealth by over $20 billion. This rally followed Oracle’s bullish forecast predicting a 70% increase in cloud infrastructure sales for the current fiscal year, underscoring the company’s rapid growth trajectory.
CEO Safra Catz emphasized the company’s ambitious plans, stating, “Oracle is on its way to becoming one of the world’s largest cloud infrastructure companies.” She also projected dramatically higher revenue growth in 2026, driven largely by AI-related demand.
Massive Investments in Data Center Capacity
To support this unprecedented growth in cloud infrastructure and AI workload demands, Oracle has ramped up its capital expenditures. The company invested $21.2 billion last year in expanding its data center capabilities and expects to increase this spending to $25 billion this year. These investments include building mega data centers equipped to handle the intensive computational needs of AI.
Ellison highlighted the exceptional nature of their recent orders, revealing to analysts, “We recently got an order that said we’ll take all the capacity you have, wherever it is… we never got an order like that before.” He also acknowledged the challenge of keeping up with demand: “The reason demand continues to outstrip supply is we can only build these data centers, build these computers, so fast.”
Oracle’s Commitment to AI and the Future
Oracle’s pivot into AI-driven cloud services extends beyond infrastructure. The company recently launched Stargate, a joint venture with OpenAI focused on delivering unprecedented computing power for AI applications. This strategic move marks Oracle’s commitment to remain at the forefront of the rapidly evolving AI landscape.
The Oracle success story exemplifies how strategic adaptation and massive investment in emerging technologies can radically alter a company’s trajectory and elevate its leadership’s wealth. Larry Ellison’s journey from cloud computing skeptic to an AI-cloud magnate is now a defining chapter in the technology sector.
About the Author
The TOI Tech Desk is a dedicated team of technology journalists at The Times of India, committed to delivering accurate, timely, and in-depth coverage of technology trends, gadget reviews, AI developments, cybersecurity, and much more.
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