Oracle to Offer Alphabet's Gemini AI Models on Cloud Services and Business Applications

Oracle is partnering with Alphabet to offer Gemini AI models on its cloud services and business applications. The partnership aims to enhance Oracle's cloud offerings and provide customers with access to advanced AI capabilities.

Oracle (ORCL) and Alphabet (GOOG, GOOGL) have announced a strategic partnership that will see Google's Gemini AI models integrated into Oracle's cloud computing services and business applications. This collaboration aims to enhance Oracle's cloud offerings and provide customers with access to advanced AI capabilities.

The deal, similar to one struck with Elon Musk's xAI in June, will allow software developers to use Google's models to generate text, video, images, and audio through Oracle's cloud infrastructure. Businesses relying on Oracle's tools for financial management, human resources, and supply chain operations can now incorporate Google's AI models within those systems, streamlining workflows and innovation. Payment for these Google technologies will occur via Oracle's existing cloud credit system, simplifying adoption for customers without introducing new billing complexities [1].

This partnership aligns with Oracle's broader strategy of providing diverse AI options to its clientele, rather than exclusively promoting proprietary solutions. It follows a comparable agreement Oracle established with xAI in June, underscoring the company’s commitment to an open ecosystem in the competitive cloud market. For Alphabet, parent of Google, the partnership bolsters its cloud division's expansion by broadening Gemini’s availability and attracting corporate users from competitors like Microsoft (MSFT) [2].

Amid this strategic progress, Oracle has implemented job reductions in its Oracle Cloud Infrastructure unit, affecting operations in the United States and India. The exact number of positions eliminated has not been specified, but the cuts target the rapidly expanding cloud business, reflecting ongoing optimizations in the tech sector [3].

Market reactions have been mixed. Oracle shares edged up less than one percent in Thursday’s premarket trading to $245.30, following a 3.81% decline in the prior session. Alphabet remained flat in the premarket at $201.97, indicating investor caution amid broader economic signals [1].

References:

[1] https://wallstreetpit.com/128414-oracle-to-resell-googles-gemini-ai-in-major-cloud-collaboration/
[2] https://finance.yahoo.com/news/oracle-google-cloud-units-strike-120119699.html
[3] https://srnnews.com/oracle-google-cloud-units-strike-deal-for-oracle-to-sell-gemini-models/