Oracle has just put its cloud rival’s AI at the heart of the software its customers run their businesses on. Investors cheered.
The company said on Thursday it is expanding its Google Cloud partnership to bring Gemini into Oracle’s enterprise applications. Gemini will slot into Oracle AI Agent Studio for Fusion Applications. It will also power embedded AI across Oracle Fusion apps and NetSuite.
Two models are on the menu. Gemini 3.1 Flash-Lite is tuned for cheap, efficient work. Gemini 3.5 Flash handles heavier reasoning and creative tasks such as video and presentations. Both join models Oracle already offers.
Wall Street liked it. Oracle shares rose as much as 8.4% to $127.64, Bloomberg reported.
Even giants are going multi-model
The logic is choice. Rather than lock customers into its own AI, Oracle is offering Google’s as another option inside tools they already use. It is the enterprise trend of the year: pick the best model for each job, rather than one model for everything.
“Organizations need the flexibility to choose the AI model best suited to each problem,” said Chris Leone, Oracle’s applications-development chief. Oracle Fusion, he added, then turns that reasoning into action “through governed workflows, approvals, and transactions.”
An unlikely alliance, deepening
Oracle and Google compete hard in the cloud, yet their partnership keeps growing, from raw infrastructure to agentic AI. Notably, the model Oracle picked for its app layer is not from OpenAI, its roughly $300bn infrastructure partner, but from Google. Cohere and Meta models were already on offer.
For Google, it is a route into thousands of businesses through software they already run. NetSuite alone claims more than 44,000 customers. For Oracle, it is a fresh selling point as it pours hundreds of billions into AI data centres.
The hard questions are still open
Not everyone is dazzled. The plan “sounds good, but be cautious,” Gartner analyst Balaji Abbabatulla told The Register. “It doesn’t necessarily look as glittery as it sounds. There are challenges under the hood.”
The biggest is accountability. If an autonomous agent makes a bad call at speed, errors can cascade before anyone notices. It is not clear who is liable. Oracle points to monitoring and audit tools. Abbabatulla is not convinced any vendor has answered the question.
For a company wrestling with a heavy AI debt load and a vast OpenAI bet, a stock pop from a model deal is welcome. It also shows where enterprise AI is heading. Even the giants now rent their rivals’ brains, and try to keep a human near the controls.
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