Miles Jamison
Oracle shares increased by 43 percent on Wednesday, marking the biggest single-day percentage jump since 1992 and positioning the company to join the trillion-dollar club, Reuters reported.
If gains hold, Oracle’s market valuation is projected to climb by about $234 billion to potentially reach $913 billion, bringing the company within striking distance of the $1 trillion mark.
Key Contracts Fuels Growth
The surge followed the Tuesday announcement of four multi-billion-dollar deals, including a five-year, $300 billion cloud computing contract with OpenAI and a contract with Elon Musk’s xAI.
The contract with OpenAI will begin in 2027 and is expected to provide Oracle with over $30 billion in annual revenue. It will require 4.5 gigawatts of energy, about the same power generated by two Hoover Dams or four million households.
“Over the next few months, we expect to sign up several additional multi-billion-dollar customers and RPO is likely to exceed half-a-trillion dollars,” stated Oracle CEO Safra Catz.
Oracle’s Larry Ellison Nears World’s Richest Title
The share price surge boosted Oracle co-founder and chairman Larry Ellison’s net worth, mainly from his 41 percent stake in the company, by around $100 billion to reach nearly $400 billion. This narrows the gap with Musk, who is on top of the list of the world’s wealthiest persons with a net worth of $439.9 billion.
