Larry Ellison, Jeff Bezos Lose $66B as AI Slump Triggers Tech Billionaire Wealth Rout
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The tech industry witnessed a dramatic shift as the wealth of several top tech billionaires plummeted due to fears over the AI bubble and fluctuating valuations. Larry Ellison, co-founder of Oracle, experienced a staggering $59.2 billion loss in his net worth since the beginning of the year, with $19 billion of that occurring just this week.
The selloff was exacerbated by developments such as Anthropic’s new legal AI tool, which caused a nearly 4% drop in the S&P 500 software and services index. The wealth of Amazon founder Jeff Bezos also took a hit, falling by $14 billion in the same period.
Tech Titans Face Unprecedented Wealth Erosion
Despite the AI advancements that have propelled companies like Nvidia to the forefront, even its CEO, Jensen Huang, faced a $7 billion reduction in wealth this week. Former Microsoft CEO Steve Ballmer also saw a $5 billion decline.
What’s Behind The AI Wealth Collapse?
The tech sector’s rapid growth and the AI boom have created immense wealth but also heightened vulnerability to market volatility. “Second thoughts” around AI deals, such as Oracle’s cloud deal with OpenAI, have previously led to significant losses for Ellison, illustrating the sector’s unpredictability.
As reported by Fortune, tech titans have historically leveraged industry growth to amass wealth, as evidenced by the $698 billion added to the top U.S. billionaires’ net worth between 2024 and 2025. However, the fast-evolving landscape leaves room for AI bubble concerns.
The Startling Impact Of Market Volatility
In the past, unexpected market shifts have caused rapid wealth fluctuations. In February 2025, for instance, Elon Musk and Mark Zuckerberg saw substantial drops in their net worth due to market disruptions.
According to the outlet, the emergence of new competitors like Chinese tech company DeepSeek, with its low-cost R1 model, has previously led to massive losses in market value, such as the $600 billion wiped from Nvidia’s market cap.
The recent events underscore the inherent risks in the tech sector, where fortunes can rise and fall dramatically with market trends and technological advancements.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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