Larry Ellison surpasses Elon Musk to become the world’s richest man as Ellison’s wealth increases.

Elon Musk, the CEO of Tesla and a prominent figure in the tech industry, has officially relinquished his title as the world’s richest individual. This distinction now belongs to Larry Ellison, the co-founder and chairman of Oracle Corporation, whose net worth surged to approximately 5 billion as of Wednesday, while Musk’s wealth stands at around 0 billion.

Ellison’s remarkable increase in wealth is attributed to a significant spike in Oracle’s stock, which soared by 39% in a single day. This surge added an estimated 2 billion to Ellison’s fortune, bolstered by his ownership of 1.2 billion shares of the company. Over the course of the year, Oracle’s stock has experienced an impressive increase of 103%. In contrast, Tesla has faced challenges, with its stock value declining by 12% during the same period. Musk remains diversified in his investments, holding stakes in major companies including SpaceX.

Ellison’s ascension to the top of the wealth rankings concludes a remarkable run for Musk, who held the title for over 300 days. Both Forbes and Bloomberg’s Billionaires Index listed Musk as the wealthiest person just a day prior to Ellison’s rise, reflecting a nearly billion loss in Musk’s net worth year-to-date. However, by Wednesday, Bloomberg announced Ellison’s newfound stature, emphasizing his substantial gains due to Oracle’s AI-driven cloud revenue growth.

Despite his recent success, Ellison appears cautious about fully embracing the title of the world’s richest man. Industry analysts attribute Oracle’s stock surge largely to its advancements in artificial intelligence and cloud computing. Meanwhile, Tesla is reportedly in the final stages of proposing a trillion, 10-year contract aimed at retaining Musk’s services, expected to garner shareholder approval in November.

Musk’s influence extends beyond the business realm, as his outspoken political activism has raised concerns among some investors. A survey conducted by Morgan Stanley revealed that a significant number of respondents viewed Musk’s political involvement—especially in relation to right-wing movements in the United States and Europe—as having a detrimental effect on business fundamentals.

With Ellison at the helm of Oracle and Musk remaining a key player in the burgeoning AI sector, the competitive dynamics of wealth and influence in the tech industry continue to evolve. As both leaders navigate their respective paths, the interplay between innovation and political activism remains a focal point for investors and industry observers alike.