Oracle’s $488 Billion Wipeout Hits Larry Ellison’s Fortune as AI Fears Grow

Oracle’s $488 billion market value loss has hit Larry Ellison’s fortune hard, raising fresh questions about AI spending, debt and investor confidence.

Oracle’s falling stock price has dealt a heavy blow to co-founder Larry Ellison’s fortune, as growing concerns about artificial intelligence spending weigh on investor confidence. The company has lost hundreds of billions of dollars in market value, putting its costly AI expansion under fresh scrutiny.

According to Benzinga, citing wealth data, Larry Ellison’s net worth fell by $194 billion over the past 12 months to about $178 billion. His fortune dropped another $6.1 billion on Friday alone. Oracle’s market value fell from around $875 billion to $387 billion, a loss of $488 billion.

How did one of the biggest names in technology lose so much wealth so quickly?

Oracle shares have fallen sharply from their peak as investors question whether the company’s huge investment in AI infrastructure will deliver returns quickly enough. Its exposure to OpenAI and the cost of building data centers have added to concerns about debt and future cash flow.

It is reported that Oracle’s total debt had climbed to $169 billion from $88 billion early last year. Higher borrowing costs could put further pressure on the company as it expands its computing capacity.

“No Oracle stock was sold under that plan, and he has no other plans to sell any of his Oracle stock,” said Oracle Corporation.

Yet the picture is not entirely negative. Oracle’s business continues to grow. Its latest reported quarterly results showed revenue rising 30% to $19.3 billion. Cloud infrastructure revenue jumped 121% to $7.4 billion, while its remaining performance obligations reached $664 billion.

If demand is growing so quickly, why are investors pulling back?

The concern is not simply whether customers want AI services. Investors also want to know how much it will cost to meet that demand and how long it will take for the spending to pay off. Large contracts can promise future revenue, but they do not automatically translate into immediate cash.

“Oracle’s capital investment program supports the pursuit of unprecedented opportunities in AI Cloud Infrastructure,” Oracle Corporation stated.

Oracle’s challenges also extend beyond the stock market. Its Project Jupiter development in New Mexico has faced power, pipeline and permitting problems, adding uncertainty to its infrastructure plans.

Can Oracle turn its AI expansion into lasting profits before investor patience runs out?

Business Honor observes that Oracle’s situation highlights a difficult question facing the wider AI industry. Strong demand and rising revenue do not guarantee that heavy investment will produce healthy returns. For Ellison and Oracle, the next challenge is proving that the money flowing into AI infrastructure can deliver sustainable growth without putting excessive pressure on the company’s finances.

FAQs

Why has Oracle lost $488 billion in market value?

Oracle’s market value has fallen amid concerns about AI infrastructure spending, debt and the time needed to earn returns on its investments.

How much is Larry Ellison worth now?

Benzinga reported on October 18, 2026, citing Bloomberg data, that Ellison’s net worth stood at about $178 billion.

Why is Larry Ellison losing wealth?

Much of Ellison’s fortune is tied to Oracle shares. When the stock falls, the estimated value of his holdings declines.

Is Oracle’s business still growing?

Yes. Its latest reported quarterly revenue rose 30% to $19.3 billion, while cloud infrastructure revenue increased 121% to $7.4 billion.

What is the biggest risk facing Oracle?

The main concern is whether future AI revenue will justify the company’s spending and debt while preserving strong cash flow.