Connect with us

Business

$34 billion was wiped from Larry Ellison’s net worth days after briefly becoming the world’s richest as ‘AI bubble’ fears grow

Published

on



That meant a sizable gain for Ellison’s net worth, which is heavily tied to the company.

The 81-year-old entrepreneur co-founder, who currently owns more than 40% of Oracle, subsequently enjoyed a $101 billion surge in wealth overnight, to $393 billion—placing him ahead of Musk’s $385 billion fortune. He joined the likes of Amazon executive chairman Jeff Bezos and LVMH’s Bernard Arnault as the few members of the ultra-rich club to surpass the Tesla CEO since he took the top spot back in 2021.

But Ellison’s ranking as the world’s richest person was short-lived: His estimated net worth fell by $34 billion in the two days following Oracle’s stock surge, according to Bloomberg’s index. Although he has made some wealth gains since, he still stands at a net loss of $23 billion from his high last Wednesday. 

And J. Bradford DeLong, a U.C. Berkeley economist, tells Fortune that the sharp downfall was triggered by “second thoughts” around Oracle’s cloud deal with OpenAI.

‘Second thoughts’ about Oracle’s involvement with AI 

On Wednesday last week, the Wall Street Journal reported that OpenAI had signed a contract with Oracle to purchase $300 billion in computing power over the next five years. It’s one of the largest cloud contracts ever signed—and the markets went crazy. DeLong says that Oracle would profit heavily from the deal, regardless of whether OpenAI becomes the leading AI business-consumer tech company.

“Ellison’s surge is because [of] the market’s perception of Oracle,” DeLong explains, adding that Ellison’s personal stake in the deal helped shift the company from “being irrelevant, to it being a key participant in OpenAI’s forthcoming construction and operation of data centers.”

But then came mounting concerns that the deal could lead to an “AI bubble.” Ellison was able to secure the OpenAI deal thanks to his budding business relationship with Nvidia CEO Jensen Huang, which allowed Oracle to buy a large amount of state-of-the-art GPUs, setting itself up as a key player in the AI industry. Yet analysts quickly warned of the financial risk—Oracle hasn’t proven itself as a top cloud provider, and OpenAI’s $12 billion annualized revenue pales in comparison to the $300 billion deal. Oracle is relying heavily on one customer who may not be able to afford or fully use what they’ve committed to; and since these obligations are promises for future services not yet delivered, the AI company could potentially delay, change, or cancel parts of the deal.

DeLong says it raises the question of Oracle’s entanglement with OpenAI—how reliable the numbers are, what risks it entails, and how much of a game-changer the deal actually is. But still, he notes that many are optimistic, and those who are intrigued can cash in on the opportunity. 

“The subsequent decline came from second thoughts about the magnitude of Oracle’s involvement,” DeLong continues. 

“Still, if you are optimistic about OpenAI—and lots of people are very optimistic—buying Oracle stock is the best path available to you to invest in something that will succeed if OpenAI succeeds, because it is now clear that if OpenAI does very well, Oracle will do well.”

The puzzle behind Musk’s simultaneous $35 billion surge in net worth 

While Ellison’s net worth plummeted, Musk enjoyed being catapulted back to the top of the Bloomberg Billionaires Index with a $35 billion gain between September 10 and 12. However, why he experienced the wealth surge is less clear than Ellison’s toppling. 

DeLong says that Musk’s company Tesla hasn’t been doing anything special as of late that would cause the stock to sell for more. Instead, it could be tied to Tesla’s annual shareholding meeting this November; investors are optimistic that Tesla’s CEO will “make some good news” for the company before this fall’s vote. 

“It seems more like ‘we can make money by frontrunning the Big Boys as they manipulate stock prices’ is driving Tesla’s short-run asset valuation here—an internet-driven phenomenon,” DeLong explains. “Options traders are buying out-of-the-money calls on Tesla out of a belief that Elon Musk wants its stock price high in November.”

“Such positive-feedback automatic demand by hedgers produces runups like we have seen in Tesla, that endure for a while.”

Fortune Global Forum returns Oct. 26–27, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.



Source link

Continue Reading

Business

Ghislaine Maxwell asks judge to set her free, citing ‘substantial new evidence’ of spoiled trial

Published

on



Jeffrey Epstein’s former girlfriend and longtime associate Ghislaine Maxwell asked a federal judge on Wednesday to set aside her sex trafficking conviction and free her from a 20-year prison sentence, saying “substantial new evidence” has emerged proving that constitutional violations spoiled her trial.

Maxwell maintained in a habeas petition she has promised to file since August that information that would have resulted in her exoneration at her 2021 trial was withheld and false testimony was presented to the jury.

She said the cumulative effect of the constitutional violations resulted in a “complete miscarriage of justice.”

A habeas petition (or writ of habeas corpus petition) is a legal request for a court to review the legality of someone’s detention, demanding that the custodian (like a prison official) bring the prisoner before a judge to justify the imprisonment, serving as a fundamental safeguard against unlawful confinement and arbitrary detention by ensuring due process. Filed by or on behalf of someone in custody, it challenges constitutional violations, such as ineffective legal counsel or unfair trials, and seeks release or other relief, often as a last resort after appeals are exhausted.

“Since the conclusion of her trial, substantial new evidence has emerged from related civil actions, Government disclosures, investigative reports, and documents demonstrating constitutional violations that undermined the fairness of her proceeding,” the filing in Manhattan federal court said. “In the light of the full evidentiary record, no reasonable juror would have convicted her.”

The filing came just two days before records in her case were scheduled to be released publicly as a result of President Donald Trump’s signing of the Epstein Files Transparency Act. The law, signed after months of public and political pressure, requires the Justice Department to provide the public with Epstein-related records by Dec. 19.

Forced to act by the new transparency law, the Justice Department has said it plans to release 18 categories of investigative materials gathered in the massive sex trafficking probe, including search warrants, financial records, notes from interviews with victims, and data from electronic devices.

Epstein, a millionaire financier, was arrested in July 2019 on sex trafficking charges. A month later, he was found dead in his cell at a New York federal jail and the death was ruled a suicide. Maxwell, a British socialite, was arrested a year later and was convicted of sex trafficking in December 2021. She was interviewed by the Justice Department’s second-in-command in July and was soon afterward moved from a federal prison in Florida to a prison camp in Texas.

After the Justice Department asked a New York federal judge to permit grand jury and discovery materials gathered prior to her trial to be released publicly, attorney David Markus wrote on her behalf that while Maxwell now “does not take a position” on unsealing documents from her case, doing so “would create undue prejudice so severe that it would foreclose the possibility of a fair retrial” if her habeas petition succeeds.

The records, Markus said, “contain untested and unproven allegations.”

Last week, Judge Paul A. Engelmayer in Manhattan granted the Justice Department’s request to publicly release the materials.

On Wednesday, U.S. Attorney Jay Clayton said during a news conference on another topic that he would follow the law and the judge’s orders pertaining to the records.

Engelmayer, who along with other judges had previously rejected Justice Department unsealing requests before the transparency law was passed, said the materials “do not identify any person other than Epstein and Maxwell as having had sexual contact with a minor.”

This story was originally featured on Fortune.com



Source link

Continue Reading

Business

Coinbase announced stock trading and new Kalshi-based prediction markets

Published

on



Coinbase is taking its biggest step yet into the broader financial sector. On Wednesday, the company announced customers will now be able to trade stocks on its platform, and also place bets on a wide range of events through a partnership with prediction market startup Kalshi. The moves signal that Coinbase is moving beyond its longtime roots as a cryptocurrency company, and are likely to intensify its rivalry with fintech firms like Robinhood.

The stock trading and prediction markets announcements came at a San Francisco event titled System Upgrade that featured stage presentations by Coinbase CEO Brian Armstrong and other executives, who also announced new trading features and a platform called Coinbase Business aimed at startups and small businesses. The event comes as the company is seeking to brand itself as an “everything exchange.”

Notably, the company did not announce a release date for its own cryptocurrency token, which executives have teased in recent months, but without providing additional details beyond saying they want to ensure any token launch takes place in a fair manner.

The new stock trading feature is the most significant announcement by far as it will be a crucial test of whether Coinbase can leverage its dominant crypto brand to expand into other sectors. It will also allow it to compete more directly with Robinhood, which made its name as a stock-trading app, but has since made significant inroads into crypto.

Coinbase will initially offer only a curated list of major stocks and ETFs, but says it will expand this to thousands of other stocks in coming months. The company says stock trading will be available 24 hours a day on five days of the week, and that there will be no fee to trade. Early next year, Coinbase plans to roll out perpetual futures for stocks—a type of derivative pioneered by the crypto industry that lets traders hold options that do not expire. The perpetual futures offering will only be available outside the U.S.

Coinbase’s new stock offerings come at a time when the financial market is beginning to embrace tokenization. The term describes turning a variety of assets into tokens that can be traded on a blockchain, a process that results in near-instant settlement and allows traders to more efficiently deploy collateral. Currently, firms like BlackRock are offering tokenized versions of Treasury Bill and money market funds. Tokenized stock offerings are still at a preliminary stage, but are expected to gain traction rapidly, which could play to Coinbase’s strengths given the firm’s longtime crypto expertise.

For its prediction markets offering, Coinbase will source its order flow from Kalshi, which is the same model used by Robinhood. In practical terms, this entails acting as a distribution platform for the startup, which has grown exponentially this year by offering a new form of betting that invites users to wager against each other on the outcome of events ranging from elections to interest rate cuts to sports games. The Kalshi partnership will likely entail a revenue split of the small fee the platform collects on the wagers.

Stocks and prediction markets have the potential to offer Coinbase significant new revenue streams, and further the company’s long-stated goal of diversifying its business beyond crypto trading. Coinbase’s stock is roughly flat from the start off the year, having giving up big gains in recent months as crypto markets have sagged and the price of Bitcoin has fallen around 30% from its October highs.

Coinbase also used the San Francisco event to announce that its Base App is now available in 140 countries. The app, which debuted this summer, aims to let ordinary people launch financial and creative products on the company’s blockchain and earn a share of the revenue they create.

Other services unveiled by Coinbase on Wednesday included expanded access to the Solana blockchain via a decentralized exchange, and an AI-powered wealth management tool called Coinbase Advisor.



Source link

Continue Reading

Business

YouTube is giving the Oscars the lifeline it desperately needs

Published

on



The Academy Awards, once television’s most glamorous night, have been hemorrhaging viewers for decades. On Wednesday, the Academy of Motion Picture Arts and Sciences announced a tourniquet: a multiyear deal granting YouTube exclusive global streaming rights to the Oscars from 2029 through 2033, ending a partnership with ABC that began in 1976 and fundamentally altering how Hollywood honors itself.

The shift represents a clear acknowledgment of the ceremony’s diminished grip on American culture. Oscar viewership peaked in 1998, when 55 million people tuned in to watch “Titanic” sweep the awards. The 2025 broadcast, meanwhile, drew 19.7 million viewers—a five-year high, but barely a third of that peak.

The Academy had been exploring alternatives as ABC’s contract neared its 2028 expiration, and YouTube’s bid evidently surpassed what traditional broadcasters offered.

“We are thrilled to enter into a multifaceted global partnership with YouTube to be the future home of the Oscars and our year-round Academy programming,” said Academy CEO Bill Kramer and Academy President Lynette Howell Taylor in a joint statement. “The Academy is an international organization, and this partnership will allow us to expand access to the work of the Academy to the largest worldwide audience possible—which will be beneficial for our Academy members and the film community.”

That global reach is the heart of the calculation. YouTube boasts more than two billion viewers worldwide, and the ceremony will stream live and free to all of them, plus YouTube TV subscribers in the United States. The platform will provide closed captioning and audio tracks in multiple languages—accessibility features that reflect how younger audiences consume content.

YouTube CEO Neal Mohan framed the partnership as both preservation and evolution. “The Oscars are one of our essential cultural institutions, honoring excellence in storytelling and artistry,” Mohan said. “Partnering with the academy to bring this celebration of art and entertainment to viewers all over the world will inspire a new generation of creativity and film lovers while staying true to the Oscars’ storied legacy.”​

The deal includes more than the main telecast. YouTube gains rights to red-carpet coverage, behind-the-scenes programming, the Oscar nominations announcement, Governors Ball access, Academy member interviews, film education programs, and podcasts. It also becomes the exclusive worldwide home for the Governors Awards, Student Academy Awards, and Scientific and Technical Awards—ceremonies that previously received little attention.

Financial terms were not disclosed, but the arrangement makes the Oscars the first of entertainment’s “big four” awards shows—the Oscars, Grammys, Emmys, and Tonys—to abandon broadcast television entirely. ABC will continue airing the ceremony through 2028, which includes the milestone 100th Oscars, before ceding the stage.

The move underscores a broader migration of live events to streaming platforms. YouTube already commands the largest share of U.S. streaming television viewership, according to Nielsen. And while Netflix has acquired rights to the SAG Awards, the Oscars represents a far more significant prize: Hollywood’s ultimate brand.

Industry reaction has been divided. Some view it as necessary modernization. Others see symbolism in the ceremony’s demotion from network television’s primetime throne to a free platform where viewers routinely skip pre-roll ads. Screenwriter Daniel Kunka captured the anxiety on X: “Broadcasting the Oscars on YouTube is like shaking hands with the guy who’s trying to kill you.”​



Source link

Continue Reading

Trending

Copyright © Miami Select.