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Larry Ellison and Monica Seles and Bill Gates (back row) watch Carlos Alcaraz of Spain play against Alexander Zverev of Germany in their Quarterfinal match during the BNP Paribas Open in Indian Wells, California, on March 14, 2024.

Clive Brunskill | Getty Images

It’s been a good year for Larry Ellison.

Oracle’s co-founder has gained roughly $75 billion in paper wealth as the software company he started in 1979 enjoyed its biggest stock rally since 1999 and the dot-com boom.

While the S&P 500 index has gained 27% in 2024, Oracle shares have shot up 63%, lifting Ellison’s net worth to more than $217 billion, according to Forbes, behind only Tesla CEO Elon Musk and Amazon founder Jeff Bezos among the world’s richest people.

At 80, Ellison is a senior citizen in the tech industry, where his fellow billionaire founders are generally decades younger. Meta CEO Mark Zuckerberg, whose net worth has also ballooned past $200 billion, is half his age.

But Ellison has found the fountain of youth both personally and professionally. After being divorced several times, Ellison was reported this month to be involved with a 33-year-old woman. And at a meeting with analysts in Las Vegas in September, Ellison was as engaged as ever, mentioning offhand that the night before, he and his son were having dinner with his good friend Musk, who’s advising President-elect Donald Trump (then the Republican nominee) while running Tesla and his other ventures.

His big financial boon has come from Oracle, which has maneuvered its way into the artificial intelligence craze with its cloud infrastructure technology and has made its databases more accessible.

ChatGPT creator OpenAI said in June that it will use Oracle’s cloud infrastructure. Earlier this month, Oracle said it had also picked up business from Meta.

Startups, which often opt for market leader Amazon Web Services when picking a cloud, have been engaging Oracle as well. Last year, video generation startup Genmo set up a system to train an AI model with Nvidia graphics processing units, or GPUs, in Oracle’s cloud, CEO Paras Jain said. Genmo now relies on the Oracle cloud to produce videos based on the prompts that users type in on its website.

“Oracle produced a different product than what you can get elsewhere with GPU computing,” Jain said. The company offers “bare metal” computers that can sometimes yield better performance than architectures that employ server virtualization, he said.

In its latest earnings report earlier this month, Oracle came up short of analysts’ estimates and issued a forecast that was also weaker than Wall Street was expecting. The stock had its worst day of 2024, falling almost 7% and eating into the year’s gains.

Oracle has the best infrastructure for hosting GPUs anywhere, says Citizens JMP's Patrick Walravens

Still, Ellison was bullish for the future.

“Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds,” Ellison said in the earnings release.

For the current fiscal year, which ends in May, Oracle is expected to record revenue growth of about 10%, which would mark its second-strongest year of expansion since 2011.

Jain said that when Genmo has challenges, he communicates with Oracle sales executives and engineers through a Slack channel. The collaboration has resulted in better reliability and performance, he said. Jain said Oracle worked with Genmo to ensure that developers could launch the startup’s Mochi open-source video generator on Oracle’s cloud hardware with a single click.

“Oracle was also more price-competitive than these large hyperscalers,” Jain said.

‘That’s going to be so easy’

Three months before its December earnings report, at the analyst event in Las Vegas, Oracle had given a rosy outlook for the next three years. Executive Vice President Doug Kehring declared that the company would produce more than $66 billion in revenue in the 2026 fiscal year, and over $104 billion in fiscal 2029. The numbers suggested acceleration, with a compound annual growth rate of over 16%, compared with 9% in the latest quarter.

After Kehring and CEO Safra Catz spoke, it was Ellison’s turn. The company’s chairman, technology chief and top shareholder strutted onto the stage in a black sweater and jeans, waved to the analysts, licked his lips and sat down. For the next 74 minutes, he answered questions from seven analysts.

“Did — did he say $104 billion?” Ellison said, referring to Kehring’s projection. Some in the crowd giggled. “That’s going to be so easy. It is kind of crazy.”

Oracle’s revenue in fiscal 2023 was just shy of $50 billion.

The new target impressed Eric Lynch, managing director of Scharf Investments, which held $167 million in Oracle shares at the end of September.

“For a company doing single digits for a decade or so, that’s unbelievable,” Lynch told CNBC in an interview.

Oracle co-founder and Chairman Larry Ellison delivers a keynote address during the Oracle OpenWorld on October 22, 2018 in San Francisco, California. 

Justin Sullivan | Getty Images

Oracle is still far behind in cloud infrastructure. In 2023, Amazon controlled 39% share of market, followed by Microsoft at 23% and Google at 8.2%, according to industry researcher Gartner. That left Oracle with 1.4%.

But in database software, Oracle remains a stalwart. Gartner estimated that the company had 17% market share in database management systems in 2023.

Ellison’s challenge is to find opportunities for expansion.

Last year, he visited Microsoft headquarters in Redmond, Washington, for the first time to announce a partnership that would enable organizations to use Oracle’s database through Microsoft’s Azure cloud. Microsoft even installed Oracle hardware in its data centers.

In June, Oracle rolled out a similar announcement with Google. Then, in September, Oracle finally partnered with Amazon, introducing its database on AWS.

Oracle and Amazon had exchanged barbs for years. AWS introduced a database called Aurora in 2014, and Amazon worked hard to move itself off Oracle. Following a CNBC report on the effort, Ellison expressed doubt about Amazon’s ability to reach its goal. But the project succeeded.

In 2019, Amazon published a blog post titled, “Migration Complete – Amazon’s Consumer Business Just Turned off its Final Oracle Database.”

Friendlier vibe

Ellison looked back on the history between the two companies at the analyst meeting in September.

“I got kind of got cute commenting about Amazon uses Oracle, doesn’t use AWS, blah, blah,” he said. “And that hurt some people’s feelings. I probably shouldn’t have said it.”

He said a friend at a major New York bank had asked him to make sure the Oracle database works on AWS.

“I said, ‘Great. It makes sense to me,'” Ellison said.

The multi-cloud strategy should deliver gains in database market share, said analyst Siti Panigrahi of Mizuho, which has the equivalent of a buy rating on Oracle shares. Cloud deals related to AI will also help Oracle deliver on its promise for faster revenue growth, he said.

“Oracle right now has an end-to-end stack for enterprises to build their AI strategy,” said Panigrahi, who worked on applications at Oracle in the 2000s.

So far, Oracle has been mainly cutting high-value AI deals with the likes of OpenAI and Musk’s X.ai. Of Oracle’s $97 billion in remaining performance obligations, or revenue that hasn’t yet been recognized, 40% or 50% of it is tied to renting out GPUs, Panigrahi said.

Oracle didn’t respond to a request for comment.

Panigrahi predicts that a wider swath of enterprises will begin adopting AI, which will be a boon to Oracle given its hundreds of thousands of big customers.

There’s also promise in Oracle Health, the segment that came out of the company’s $28.2 billion acquisition of electronic health record software vendor Cerner in 2022.

Yoshiki Hayashi, Marc Benioff and Larry Ellison attend the Transformative Medicine of USC: Rebels with a Cause Gala in Santa Monica, California, on Oct. 24, 2019.

Joshua Blanchard | Getty Images

Unlike rival Epic, Oracle Health lost U.S. market share in 2023, according to estimates from KLAS Research. But Ellison’s connection to Musk, who is set to co-lead Trump’s Department of Government Efficiency, might benefit Oracle Health “if there is a bigger push towards modernizing existing healthcare systems,” analysts at Evercore said in a note last week. They recommend buying the stock.

For now, Oracle is busy using AI to rewrite Cerner’s entire code base, Ellison said at the analyst event.

“This is another pillar for growth,” he said. “I think you haven’t quite seen it yet.”

Hours earlier, Ellison had put in a call to Marc Benioff, co-founder and CEO of Salesforce. Benioff knows Ellison as well as anyone, having worked for him for 13 years before starting the cloud software company that’s now a big competitor.

“It was awesome,” Benioff said in a wide-ranging interview the next day, regarding his chat with Ellison.

Benioff spoke about his former boss’s latest run of fortune.

“Larry really deeply wants this,” Benioff said. “This is very important to him, that he is building a great company, what he believes is one of the most important companies in the world, and also, wealth is very important to him.”

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TikTok creators, partners remain optimistic ahead of app’s second ban deadline

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TikTok creators, partners remain optimistic ahead of app’s second ban deadline

Photo illustration shows the TikTok logo displayed on a mobile phone screen.

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For the second time this year, TikTok is staring at a deadline that could determine its fate in the U.S. and that of numerous creators and brands that have built businesses on the Chinese-owned social app.

The sense of urgency that led some creators to post wistful goodbye videos in January has shifted to a more cautiously optimistic outlook, with creators and firms saying they believe TikTok will remain in the U.S. They are, however, hedging their bets. 

“I’m trying to be optimistic and hope that they keep it, but as a creator, I have to be prepared either way,” said Gianna Christine, a creator with 2.7 million TikTok followers. 

TikTok could be effectively banned in the U.S. on April 5 because of a national security law originally signed by former President Joe Biden that requires its Chinese parent ByteDance to divest the app’s American operations. ByteDance originally faced a Jan. 19 deadline to sell TikTok, but Trump signed an executive order instructing the attorney general to not enforce the law, granting the Chinese company 75 more days to divest the U.S. portion of its business.

Gianna Christine makes lifestyle videos about living in New York City to her nearly 3 million followers on TikTok.

Gianna Christine

Like others who spoke with CNBC, Christine said she hasn’t received any direct updates from TikTok about its future. Christine said she’s staying positive about TikTok’s chances of remaining in the U.S. but she’s also expanding her presence on platforms like Snapchat and YouTube as a precaution.

“You never know what will happen,” Christine said.

Throughout his 2024 presidential campaign, Trump said many positive comments about TikTok and used the app as a campaign tool. Trump said Sunday that he is “pretty certain” that a TikTok deal will be reached before the April deadline, according to AFP. Last week, Trump said he may extend the deadline if a deal isn’t reached and that he may reduce tariffs on China to help facilitate a transaction.

“I really don’t see TikTok getting banned,” said Olivia Plotnick, the founder of the Wai Social marketing and consultancy agency. “Trump really is going to want to show how amazing he is, and make a deal happen.”

TikTok and the White House did not respond to requests for comment.

Whatever is in store for TikTok, the company is acting like business as usual.

Current and former TikTok workers said they have received no communication from management about its future in the U.S. Brands and creators said they have received no updates from the company either.

That lack of communication and the uncertainty of the app’s future hasn’t stopped TikTok from moving forward with new partnerships. 

Marketing firm Meltwater, for example, announced that it joined TikTok’s marketing partners program in March. Aditya Jami, Meltwater’s tech chief, said that his TikTok contacts seemed to be “in the dark” about the app’s future, but they went ahead with the partnership, which will require deep integration between the two companies.

 “They are actually going to do more and more things that we can build together and then expose to our customers, so I feel like it’s going business as usual,” Jami said.

TikTok creator Alyssa McKay has more than 10 million followers, but she’s been proactive about diversifying her following across more platforms.

“If you’re not already posting on Snapchat, Instagram Reels, YouTube Shorts, that’s where you need to be,” said McKay, adding that her efforts to get ahead of a potential ban have resulted in her already earning more revenue from other platforms than she does on TikTok.

Alyssa McKay is a content creator with over 10 million followers on TikTok.

Alyssa McKay

The first TikTok ban deadline didn’t significantly alter the social media postings from creators and brands, according to data provided to CNBC by Later, a social media and influencer marketing firm.

Social media users increased their posts on Threads and YouTube by 10% and 6%, respectively, the week of the TikTok ban in January compared to the week prior, according to Later. Still, the general posting habits of brands and creators during the week after the January deadline compared to the week preceding it were nearly identical, a spokesperson for Later said. 

Throughout March, creators and brands steadily reduced the number of scheduled TikTok posts they plan to publish during the weeks leading up to the April deadline while increasing their scheduled Instagram posts, Later data showed. The March data suggests creators and brands are “reallocating content to Instagram as a safer or more stable alternative,” the Later spokesperson said.

For a brief moment, the Chinese social media app RedNote rose to the top of Apple’s app store during the week leading to the January deadline. Known as Xiaohongshu in China, that app has similar short-video features as TikTok, but it has a user base comprised mostly of women from more affluent Chinese cities that embraced the sudden influx of American users, Plotnick of Wai Social said.

“They were super welcoming, and it was a really fun time,” Plotnick said.

RedNote’s moment in the sun won’t likely repeat. The app is no longer a priority now that TikTok has resumed normal operations, creators and brands said. 

“I don’t foresee buzz around alternative apps like RedNote,” Later CEO Scott Sutton said. “Those were a blip and lacked the staying power of other platforms.”

It’s unclear whether lawmakers who are concerned about the Chinese Communist Party  or TikTok-competitors like Meta or Google would take to the courts to enforce the national security law, said Neil Chilson, a former chief technologist at the Federal Trade Commission who now heads AI policy at Abundance Institute non-profit. Taking that kind of legal action carries the risk of upsetting TikTok’s giant user base and Trump, Chilson said.

“Trump likes this sort of leverage that the law provides him,” Chilson said. “He’s obviously using quite aggressively — not quite in the text of the law — his latitude to make deals to continue to string this along.”

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Amazon resumes drone deliveries after two-month pause

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Amazon resumes drone deliveries after two-month pause

Amazon has restarted drone deliveries in two states after a months-long pause, the company confirmed.

In January, Amazon halted Prime Air deliveries in College Station, Texas, and Tolleson, Arizona, the two U.S. markets where it’s testing the service, as the company rolled out a software update to its drone fleet.

Amazon discovered an abnormality with the drone’s altitude sensor, caused by dust in the air, that could have caused its system to produce an inaccurate reading of its position relative to the ground, the company said. Amazon “never experienced an actual safety issue,” but said it opted to suspend deliveries while it corrected the issue.

The company brought drone deliveries back online last week after it completed the software update and received approval from the Federal Aviation Administration, Amazon spokesperson Av Zammit said in a statement.

“Safety underscores everything we do at Prime Air, which is why we paused our operations to conduct a software update on the MK30 drone,” Zammit said. “The updates are now complete and were approved by the FAA, allowing us to resume deliveries.”

An FAA spokesperson didn’t immediately provide a comment.

Zammit said Prime Air has seen “unprecedented levels of demand” since it resumed service. David Carbon, an executive who oversees Amazon’s drone program, wrote in a LinkedIn post last week that the company dropped a bottle of ZzzQuil sleep medicine at an Arizona customer’s home in “31 minutes and 30 seconds.” Carbon didn’t say how far the drone had to fly and Zammit declined to provide details.

For over a decade, Amazon has been working to bring to life founder Jeff Bezos’ vision of drones whizzing toothpaste, books and batteries to customers’ doorsteps in 30 minutes or less. But progress has been slow, as Prime Air has only been made available in the U.S. in College Station and Tolleson. A test site in Lockeford, California, was shuttered last April. The program was also hit with layoffs in 2023 as Amazon CEO Andy Jassy cut costs across the company.

Amazon has set a goal to deliver 500 million packages by drone per year by the end of the decade. The company last year notched a critical regulatory milestone that could enable it to accelerate deliveries. It’s eyed international expansion to the U.K., and recently welcomed Transportation Secretary Sean Duffy in a visit to a Prime Air facility.

The company also introduced a new version of its delivery drone, called the MK30, which is designed to be quieter than previous models and can fly in light rain.

Customers in College Station, a quiet suburban town that’s about 100 miles northwest of Houston, had previously complained about the drones’ noise levels. After rolling out the MK30, the company is also taking steps to relocate its drone hub farther away from residents’ homes later this year.

Before Amazon suspended drone deliveries, the MK30 crashed in two separate incidents during test flights at the company’s facility in Pendleton, Oregon. Last December, a software issue caused two drones to crash, according to Bloomberg. And in September, a pilot mistakenly caused a “mid-air collision” between two drones after he tested how the MK30 would perform when faced with a failed propeller, according to a federal crash report.

Another crash occurred on Feb. 21 during tests at the Pendleton site, which resulted in a drone sustaining substantial damage, according to a report compiled by the National Transportation Safety Board.

Amazon said the crashes were unrelated to its decision to halt drone operations. The company has said these kinds of incidents, which have also occurred with other models in previous years, are part of the testing process, as it pushes drone systems “up to the limits and beyond.”

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Trump’s tariffs could mean big business for supply chain software startup LightSource

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Trump's tariffs could mean big business for supply chain software startup LightSource

LightSource cofounders: CTO Idan Mintz and CEO Spencer Penn

Courtesy: LightSource

With President Donald Trump set to impose sweeping tariffs on a wide swath of U.S. trading partners this week, corporate America is awash in uncertainty.

LightSource, a San Francisco startup whose software helps companies manage their procurement process, costs and vendor relationships, didn’t know what the president’s tariffs plan would look like before raising its first funding round. But the timing didn’t hurt.

LightSource has just closed a $33 million financing, led by Bain Capital Ventures and Lightspeed Venture Partners, with participation from J2 Ventures.

“Tariffs and trade winds are shifting so fast, it’s enough to make your head spin,” said Ajay Agrawal, a partner at Bain and now a board member at LightSource. “For a company with hundreds or thousands of different parts and suppliers — even just understanding what the impact will be on their whole enterprise is unbelievable.”

President Trump’s plans to slap “reciprocal tariffs” on all countries with duties on U.S. goods is set to be announced on Wednesday. Concerns surrounding the impact of those moves pushed the Nasdaq down more than 10% in the first quarter, the index’s biggest drop for any period since 2022.

Trump has already said he would impose 25% tariffs on “all cars that are not made in the United States.” Autos is a market that co-founder and CEO Spencer Penn knows well.

LightSource was started in 2021 by Penn and CTO Idan Mintz, while the two were working in different parts of Alphabet. Penn was at robotaxi unit Waymo, and Mintz was in the Google X “moonshot factory.”

Prior to Waymo, Penn worked at Tesla when the electric vehicle maker was starting to mass produce its popular Model 3 sedans. He said that finance, sourcing and engineering professionals have to work together to find, or sometimes custom order, high-quality parts. They also have to maintain their best supplier relationships while evaluating new potential vendors and negotiating fair prices.

Often these teams rely on “hundreds of disparate processes and information that’s stuck in thousands of emails, spreadsheets and randomly formatted invoices and contracts,” Penn said.

LightSource, which has about 30 employees, connects a company’s procurement-related information sources and systems to streamline that complex work. The aim is to speed up a company’s procurement process, saving the business time, money and pain while working with suppliers.

Mintz describes LightSource’s offering as a kind of “operating system” for procurement. Penn says it has the potential to do for procurement what Salesforce did for customer relationships.

Whether it’s a global pandemic, a natural disaster cutting off a shipping route, or a major shift in tariffs and trade policy, Mintz said, any supply chain disruption can make a huge difference to a company’s profit margins and its ability to deliver a product on time.

Current customers include consumer packaged goods companies, aerospace ventures, e-commerce companies and automotive giants.

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