Oracle’s 40% Stock Surge in 2025: $300B AI Deals Push Ellison Past Musk as World’s Richest

On September 10, 2025, the Oracle Corporation sent a seismic shock to world markets, its stock up almost 40 per cent in a day, lifted by giant AI deals and a visionary future view. Not only did this record rally take the market valuation of Oracle almost to $1 trillion, it also elevated co-founder Larry Ellison to become the wealthiest person on the planet, at least temporarily, by passing Elon Musk.

The news has sparked a frenzy among investors as the tech giant consolidates its role as a leader in the AI infrastructure race and transforms the way the cloud computing landscape is viewed. This is the up-to-date report on the meteoric rise of Oracle and its future prospects in 2025 and beyond.

Oracle’s Record-Breaking Stock Rally

The stock of Oracle increased by 36.7 per cent and closed at around $ 345 on September 10, 2025, marking the largest one-day gain in the company’s history since 1992. During intraday surges, the stock rose as much as 43 per cent, with these spikes giving Oracle a market capitalisation of about 234 billion in several hours, bringing the company to 913 billion.

This boom places Oracle within striking distance of the trillion-dollar club, an accomplishment of a very small number of technology giants such as Apple, Microsoft, and Nvidia. By September 11, 2025, the stock is staying strong, with year-to-date returns of more than 45%, beating the S&P 500 and even the Tech cohort of the so-called Magnificent Seven.

This rally was triggered by a post-earnings call by Oracle, during which executives announced a set of transformative AI-based deals that exceeded Wall Street’s expectations. However, even though the first-quarter fiscal revenues of $ 14.9 billion, a 12-per-cent growth over the year, fell a little short of the forecast, the other focus was on the Oracle cloud infrastructure unit, which recorded an incredible 55-per-cent increase in revenue to $ 3.3 billion.

The volume of trading surged as institutional investors rushed to capitalise on Oracle’s central position in the AI revolution, marking the start of a new era for the company, which was primarily known for its database software.

Massive AI Contracts Fuel Oracle’s Ascent

The core of Oracle’s success is the strategic turn to artificial intelligence infrastructure. The company announced a mind-blowing five-year deal with OpenAI, the developers of ChatGPT, worth a staggering $300 billion, over five years, which is one of the largest cloud contracts in history.

This settlement falls under a larger amount of future revenue liabilities, referred to as the remaining performance obligations (RPO), of which Oracle executives anticipate will grow to over $500 billion in the coming years. According to the emphasis put by the CEO of Safra Catz, Oracle Cloud Infrastructure (OCI) is poised to support the high computational needs of generative AI with the most impressive performance and low costs.

The strategic alliance with industry leaders is also a bonus to the momentum of Oracle. Partnerships with Amazon Web Services, Google Cloud and Microsoft Azure have witnessed a revenue increase of sixteen times in the first quarter, which is a testimony to the ease with which Oracle can be integrated with other hyperscalers. These alliances are attractive to organisations that would require freedom and interoperability of their cloud policies.

Besides, Oracle is currently a key participant in the ambitious Stargate supercomputer, a $500 billion project by SoftBank and OpenAI to construct next-generation data centres based on AI. The company is also an early-stage investor in xAI, an AI company co-founded by Elon Musk, as well as other tech powerhouses such as Meta, Nvidia, and AMD that use Oracle infrastructure to create state-of-the-art models.

The concentrated nature of Oracle in terms of speciality AI hardware, such as GPU clusters optimised for machine learning, provides it with a competitive advantage within a market that is dominated by hyperscalers. Analysts point out that the capability to service a wide range of clients and remain neutral makes Oracle the keystone of the AI ecosystem, able to handle the heaviest workloads with unmatched efficiency.

Larry Ellison’s Wealth Surges Past Musk

The explosive performance of the stock had a profound personal effect on Oracle co-founder, chairman, and CTO Larry Ellison. Holding a 41 per cent stake in the company, which is about 1.16 billion shares, the net worth of Ellison has increased more than 100 billion dollars within one day to an estimated 393 billion dollars.

This put him momentarily ahead of Elon Musk, who has a fortune valued at $ 385 billion, based on calculations from the Forbes and Bloomberg Billionaires Index. The one-day increase of $88.5 billion was a new record, surpassing Ellison’s previous record of a $63 billion increase by Musk in December 2024.

Ellison is still 81, and he is a driving force behind the transformation of Oracle, which has shifted the company from a database business to one powered by cloud and AI technologies.

In 2025 alone, his fortune has doubled as Oracle has seen its value grow by 100 per cent, and Musk has seen his own wealth face headwinds with Tesla stock falling by 14 per cent under the pressure of competition in the electric vehicle sector. The billionaire competition reaffirms the stakes of the current AI-powered tech surge, with Ellison’s rise becoming a symbol of Oracle reaching new heights.

Global Market Ripples and AI’s Economic Impact

The news about the blockbuster day sparked a surge in confidence in global markets, leading to an increase in stocks associated with AI. Asian markets opened up on September 11, 2025, with the Nikkei 225 of Japan climbing 0.8 per cent and the Taiwan benchmark 1 per cent following semiconductor companies such as Taiwan Semiconductor Manufacturing Co., which announced that revenues had grown 34 per cent.

The S&P 500 and Nasdaq on Wall Street reached record highs on September 10, driven by Oracle’s performance and anticipation of interest rate reductions by the Federal Reserve, which had just received favourable news on inflation.

The current cloud infrastructure revenue of Oracle is projected to be $ 18 billion this fiscal year, which places it in a strategic position to claim a larger portion of the cloud market, valued at over $ 200 billion. Nevertheless, its forward earnings are 33.34, which is larger than those of Amazon (32.34) and Microsoft (30.83), eliciting discussion on the sustainability of valuation, especially when economic growth is low.

The critics caution that Oracle is bound to the AI hype cycle, and there is a danger of regulatory analysis of energy use in data centres or an AI investment downturn. However, the long-term nature of contracts, especially with OpenAI, acts as a buffer to short-term volatility.

Oracle’s Path to Trillion-Dollar Status

In the future, the leaders of Oracle forecast a doubling of revenues due to the growing portfolio of AI and investments in data centres. The fact that the firm has been able to enter into multi-billion-dollar deals and formulate alliances with the hyperscalers makes it a strong contender in the cloud wars. With business in every field, such as healthcare, adopting AI technology, the Oracle infrastructure will be at the centre of the upcoming innovation.

To Larry Ellison, it is the defining moment of his reputation as a tech visionary who has reinvented Oracle for the AI era. With the firm nearing a trillion-dollar valuation, investors and analysts will be closely looking at how well the company will fulfil its own ambitious commitments.

The rise of Oracle in September 2025 is not merely a market phenomenon but a landmark in the AI revolution worldwide and has far-reaching consequences on technology, fortune and economic strength.

To sum up, Oracle’s phenomenal performance on September 10, 2025, has reinvented the company and taken Larry Ellison to a new dimension. With the company taking advantage of the AI boom, its impact on world markets and the technology industry is expanding, making it the centre of attention for both investors and industry observers.