Michael Dell has moved ahead of Jeff Bezos to become the world’s third-richest person, after a sharp rise in Dell Technologies shares pushed his fortune to around $267 billion.
The jump marks the first time Dell has reached the third position in the global billionaire rankings. He now sits behind Tesla and SpaceX chief Elon Musk and Alphabet co-founder Larry Page.
Dell’s wealth climbed as shares of Dell Technologies hit a record high. The company’s stock gained nearly 2% in recent trading, taking its value to a new peak. Dell owns a large stake in the company, so the rise in its share price has had a direct impact on his personal wealth.
His estimated fortune stood at around $267.7 billion, while Bezos was valued at roughly $265.2 billion. The difference between the two fortunes is relatively small, meaning their positions could change again with movements in their companies’ stock prices.
Dell’s latest rise has been closely linked to the growing demand for artificial intelligence technology. Dell Technologies has changed significantly from the company once best known for selling personal computers. It is now a major supplier of servers, storage systems and other equipment needed to run AI applications.
Businesses around the world are spending heavily on data centres and computing systems as they expand their use of artificial intelligence. That spending has created a major opportunity for Dell Technologies.
The company recently reported a strong quarter, with revenue reaching about $47 billion, up 58% from a year earlier. Earnings also increased as demand for AI-related equipment remained strong.
AI-related orders reached about $60.9 billion, while revenue from AI-related products stood at around $16.4 billion during the quarter.
Strong demand has also encouraged Dell Technologies to raise its outlook for the year. The company now expects annual revenue to reach around $192 billion.
Investors have responded positively to the company’s AI growth story. The increase in Dell Technologies shares has been especially important to Michael Dell because he owns about 40% of the company.
His fortune can therefore rise or fall by billions of dollars depending on the performance of the stock.
Dell’s journey to the top of the billionaire rankings began long before the current AI boom. As a university student, he started selling computers directly to customers. His idea was simple: build computers based on what customers wanted and sell them without depending heavily on traditional retail stores.
The business grew quickly as personal computers became common in homes and offices. What started as a small student venture eventually became one of the world’s best-known technology companies.
Over the years, Dell expanded beyond personal computers and moved deeper into business technology. The company later became Dell Technologies after its major acquisition of data-storage company EMC.
That transformation has played an important role in Dell’s growing wealth. The company now supplies a wide range of technology products used by businesses, including servers and systems that support large data centres.
Artificial intelligence has given that business another major boost.
Companies developing AI models need enormous computing power. They require powerful servers and large data-centre systems to store information and process huge amounts of data. Dell Technologies has become one of the companies supplying this infrastructure.
The shift has also changed how investors view Dell’s business. It is no longer seen simply as a traditional computer maker. Its growing role in the AI industry has made it part of one of the biggest investment trends in technology.
Jeff Bezos remains one of the world’s richest people despite slipping behind Dell. He founded Amazon and continues to hold a major stake in the company. Amazon’s businesses range from online shopping to cloud computing and artificial intelligence.
Bezos’ position in the wealth rankings can also change quickly because much of his fortune is tied to Amazon’s share price.
The close race between Dell and Bezos shows how quickly billionaire rankings can change. Much of the wealth held by technology billionaires comes from company shares rather than cash. A strong rise in a stock can therefore add billions of dollars to a founder’s wealth in a single day.
Dell’s rise also highlights how much the AI boom is changing the technology industry. The gains are not limited to companies developing AI software. Businesses supplying chips, servers, data centres and other infrastructure are also seeing strong demand.
Michael Dell’s latest milestone adds another chapter to a remarkable technology journey. He began by selling computers as a student and went on to build a global technology company.
Decades later, that company is benefiting from one of the world’s biggest technological shifts. His move past Bezos may not last permanently, given how closely both fortunes are linked to stock-market movements. But reaching the world’s top three richest people represents a remarkable rise for the entrepreneur who started his business from a college dorm room.