Oracle to offer Google’s Gemini models via OCI generative AI service

AUSTIN/SUNNYVALE - Oracle (NYSE:ORCL), a prominent player in the software industry with a market capitalization of $686 billion and annual revenue of $57.4 billion, and Google Cloud announced Thursday an expanded partnership that will give Oracle customers access to Google’s Gemini AI models through Oracle Cloud Infrastructure (OCI) Generative AI service.

Under the agreement, Oracle will initially offer Gemini 2.5 and plans to make Google’s entire range of Gemini models available through new integrations with Vertex AI. This includes models for video, image, speech, and music generation, as well as specialized industry models like MedLM. According to InvestingPro, Oracle has demonstrated strong business momentum with 8.4% revenue growth in the last twelve months.

Oracle customers can use their existing Oracle Universal Credits to access the Gemini models, which are designed for multimodal understanding, coding, productivity automation, and knowledge retrieval tasks.

"Oracle has been intentional in offering model choice curated for the enterprise, spanning open and proprietary models," said Clay Magouyrk, president of Oracle Cloud Infrastructure, in a press release statement.

The companies also plan future collaborations to make Gemini models available within Oracle Fusion Cloud Applications, potentially enhancing workflows across finance, HR, supply chain, and other business functions.

Thomas Kurian, CEO of Google Cloud, noted that "leading enterprises are using Gemini to power AI agents across a range of use cases and industries," adding that Oracle customers can now access these models from within their Oracle environments.

The partnership highlights Oracle’s strategy of providing enterprise customers with diverse AI model options while leveraging Google’s capabilities in search-grounded responses and reasoning abilities.

Oracle (NYSE:ORCL) emphasized that this integration aligns with its focus on delivering secure and cost-effective AI solutions for enterprise customers. Trading near its 52-week high of $261, Oracle currently appears overvalued according to InvestingPro analysis, which offers 15+ additional exclusive insights about the company’s valuation and financial health. For deeper analysis, investors can access the comprehensive Pro Research Report, available to InvestingPro subscribers, covering Oracle among 1,400+ top US stocks.

In other recent news, Oracle Corp. is undergoing significant changes as it reduces its workforce in the cloud division. The company is managing costs while making substantial investments in artificial intelligence infrastructure. Despite the layoffs, which were partly performance-related, Oracle is actively recruiting new talent for the cloud unit. In analyst updates, Bernstein SocGen Group raised its price target for Oracle to $308, citing the company’s ongoing cloud transition and potential growth in Oracle Cloud Infrastructure. TD Cowen also increased its price target to $325, following Oracle’s expanded partnership with OpenAI in the Stargate project. BofA Securities adjusted its price target to $295, noting Oracle’s strategic position as a beneficiary of the AI cycle. Additionally, Oracle has pledged support for the White House’s vision for healthcare data interoperability, committing to work with the Centers for Medicare and Medicaid Services. This initiative aims to develop a more secure and AI-enabled healthcare system.

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