Bengaluru — Oracle shares surged about 43% to a record high on Wednesday, putting the company on track to join the elite trillion-dollar club, after it showcased its rise as a major AI cloud provider.
The company unveiled four multibillion-dollar contracts on Tuesday, amid an industry-wide shift, led by companies such as OpenAI and xAI, to aggressively spend to secure the huge computing capacity needed to stay ahead in the AI race.
The stock was last up 35.8%, after rising to hit a record high of $345.69, set for its biggest one-day percentage jump since 1992.
Separately, the Wall Street Journal on Wednesday reported that OpenAI has signed a contract to purchase $300bn in computing power from Oracle over roughly five years, marking one of the biggest cloud contracts ever signed.
OpenAI and Oracle did not immediately respond to Reuters requests for comment.
Oracle co-founder and chair Larry Ellison, 81, whose net worth is largely derived from his 41% stake in Oracle, saw his fortune rise by about $100bn to about $392.6bn, according to Forbes.
He is rapidly closing in on Elon Musk in the race for the title of the world’s richest person. Musk’s net worth last stood at $439.9bn.
The company will add about $234bn to its market valuation, taking the total valuation to about $913bn, if gains hold, and bringing Oracle closer to the coveted $1-trillion club.
Its shares have risen 45% so far this year, outperforming the so-called Magnificent Seven stocks and the broader S&P 500 index, with investors betting big on AI-driven cloud firms.
“Over the next few months, we expect to sign up several additional multibillion-dollar customers and RPO is likely to exceed half-a-trillion dollars,” said CEO Safra Catz during a post-earnings call.
Currently, Microsoft, Amazon Web Services and Google Cloud dominate the cloud computing market with a combined 65% share, while Oracle, Alibaba, CoreWeave and others hold a smaller slice of the market.
Oracle’s first-quarter results lifted shares of Nvidia, Broadcom and Advanced Micro Devices, which supply semiconductors used in data centres. Shares of the companies rose between 2% and 8%.
Competitor CoreWeave’s shares were up about 15%.
The company has struck deals with Amazon, Alphabet and Microsoft to let their cloud customers run Oracle Cloud Infrastructure (OCI) alongside native services. The revenue from these partnerships rose more than sixteen-fold in the first quarter.
“What matters here is that this figure now includes contributions from the Stargate venture and two other big AI players, meaning revenues beyond 2026 go much higher,” said Ben Reitzes, analyst at Melius Research.
Analysts flagged Oracle’s role in SoftBank and OpenAI’s Stargate project as another tailwind, giving the company a foothold in the large-scale AI infrastructure project that is expected to channel about $500bn in spending.
The company also supplies cloud services to xAI, the AI start-up founded by Musk, a longtime ally of Ellison.
Oracle’s stock is trading at over 33.34 times its 12-month forward earnings estimates, compared with Amazon’s 32.34 and Microsoft’s 30.83.
Update: September 10 2025
This story has more information.
Reuters
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