Elon Musk Reclaims Top Spot As Larry Ellison's $101B AI Gain Evaporates, Accused of 'Ruining' Twitter Algorithm

The title of 'world's richest person' has become a revolving door, but for a brief, stunning moment in September, it swung in a surprising direction. Elon Musk, the perennial name at the top of the list, was momentarily unseated by Oracle founder Larry Ellison.

The dramatic surge and its rapid collapse highlight the extraordinary volatility of the tech sector, where fortunes tied to the future of artificial intelligence can be made and erased in months.

The $300 Billion Deal That Briefly Dethroned Elon Musk

Ellison's astronomical rise was fuelled by a wave of market optimism. The foundation for this change was an Oracle earnings report that featured results exceeding expectations, a significant rise in bookings, and a confident projection for future growth in cloud services. This news sparked a 41% stock rally, the largest in Oracle's operational history.

The true catalyst, however, was a monumental commitment from OpenAI, which pledged to spend $300 billion with Oracle over five years. The announcement prompted a sharp one-day stock surge, the company's strongest since 1992. This event led to Ellison achieving the largest single-day wealth gain ever recorded in the Bloomberg Billionaires Index: a staggering $101 billion. At that peak, Ellison's net worth hit $393 billion, momentarily positioning him above Musk.

Why Ellison's Lead Over Elon Musk Evaporated

What goes up, must come down. The momentum that created Ellison's September surge has since faded completely. A CNBC report claims that Oracle's value has dropped by almost one-third (30%) over the last two months, 'completely erasing the stock gains from September'.

The company's stock is reportedly on pace for its most significant monthly decline since 2011. According to a report by The Financial Times, Oracle shares have dropped 25% from last month, a decline almost double that of the next weakest hyperscaler, Meta.

This investor caution stems from Oracle's late arrival to cloud computing. Its current strategy leans heavily on AI, tying much of its outlook to the performance and stability of major clients like OpenAI. Investors have reportedly 'gone increasingly cautious' about the heavy capital spending and high valuations of tech companies, especially if major AI start-ups such as OpenAI or Anthropic 'struggle to meet expectations for the technology'.

How Elon Musk Reclaimed His Top Position

Musk regained his position as the world's richest person after briefly falling behind Ellison, reflecting just how quickly billionaire rankings can shift in the tech sector. He moved ahead again with an estimated net worth of $384.2 billion, supported by gains across his major holdings.

Tesla shares have risen over the past year, despite softer vehicle sales and delays in its robo-taxi plans. The true powerhouse in his portfolio, SpaceX, is now valued at about $400 billion and 'continues to boost Musk's wealth, helped by revenue from its Starlink satellite business'.

Apart from this, Musk's stake in xAI, which was recently merged with X, adds further value, with the combined entities estimated at around $60 billion. However, Musk's management of X, formerly Twitter, remains a source of intense controversy that is separate from its financial valuation.

The platform's algorithm is now at the centre of a political row involving US Representative Brad Sherman. The California Democrat was recently photographed viewing 'racy' content, including images of women in lingerie, on his iPad during a flight.

When the photos were published, Sherman's office released a statement blaming Musk directly. A spokesperson claimed the Congressman was just 'scrolling through Twitter — and unfortunately Elon Musk has ruined the Twitter algorithm to give people content that they don't ask for or subscribe to'. Sherman himself told reporters the 'inappropriate' images appeared on his 'For You' feed, which he blames Musk for altering.

Despite these controversies, his mix of transportation, space, and AI investments, alongside other ventures like Neuralink and the Boring Company, illustrates how innovation-heavy businesses can influence billionaire rankings.

The volatility is starkly illustrated by the current numbers. While Ellison briefly touched $393 billion, he now sits at $275 billion. Currently, Musk's total net worth is $430 billion, securing his place at the top once more.

The dramatic rise and fall of Larry Ellison's fortune—fuelled by AI optimism and erased by market doubt—serves as a stark reminder of the tech sector's volatility. While Elon Musk has firmly reclaimed his position with a diversified portfolio spanning from SpaceX to xAI, he now faces political backlash, with US Representative Brad Sherman accusing him of 'ruining' X's algorithm by pushing 'racy' content. As the battle for the top spot continues, the line between innovation and controversy blurs.