Oracle embeds rival’s AI in apps, stock jumps 8%

Oracle is embedding Google’s Gemini models directly into its enterprise software suite, a move that sent its stock soaring on Thursday. The expansion of the existing Google Cloud partnership places Gemini at the core of Oracle’s Fusion Applications and NetSuite, marking a significant shift in how the database giant approaches AI delivery.

The integration works on two levels. Gemini will be woven into Oracle AI Agent Studio for Fusion Applications, and it will also power embedded AI features across the broader Fusion and NetSuite product lines. Oracle is deploying two distinct models: Gemini 3.1 Flash-Lite, engineered for low-cost, high-efficiency tasks, and Gemini 3.5 Flash, which tackles complex reasoning, video generation, and presentation work. These join the roster of models Oracle already supports.

Investors responded with enthusiasm. Oracle shares climbed as much as 8.4% to $127.64, according to Bloomberg, reflecting optimism about the company’s AI strategy.

The strategic rationale is straightforward: choice over lock-in. Rather than forcing customers into a proprietary AI stack, Oracle is positioning Google’s models as an additional option within tools businesses already use daily. This mirrors the broader enterprise trend of multi-model flexibility, where organizations select the best model for each specific workload instead of relying on a single, universal system.

Chris Leone, Oracle’s head of applications development, framed the move around customer needs. “Organizations need the flexibility to choose the AI model best suited to each problem,” he said. He added that Oracle Fusion then converts that reasoning into action “through governed workflows, approvals, and transactions,” ensuring AI suggestions translate into accountable business processes.

The partnership is notable for its competitive undertones. Oracle and Google are fierce rivals in cloud infrastructure, yet their collaboration keeps deepening, moving from raw compute to agentic AI. Perhaps the most telling detail: Oracle selected Google’s models for its application layer rather than those from OpenAI, its massive infrastructure partner tied to a roughly $300 billion investment. Cohere and Meta models were already available on the platform.

For Google, this deal is a gateway into tens of thousands of businesses through software they already operate. NetSuite alone claims over 44,000 customers. For Oracle, it adds a fresh selling point as the company funnels hundreds of billions into AI data centers and seeks to differentiate its offerings.

Still, skepticism remains. Gartner analyst Balaji Abbabatulla told The Register that the plan “sounds good, but be cautious.” He cautioned, “It doesn’t necessarily look as glittery as it sounds. There are challenges under the hood.”

The central unresolved issue is accountability. When an autonomous agent makes a poor decision at machine speed, errors can compound rapidly before human oversight kicks in. The question of liability remains murky. Oracle points to its monitoring and audit capabilities, but Abbabatulla argues no vendor has yet provided a convincing answer.

For Oracle, a company carrying substantial AI-related debt and a massive bet on OpenAI, a stock surge from a model partnership is a welcome development. It also signals the direction of enterprise AI: even the largest players are now renting their competitors’ intelligence, while scrambling to keep humans meaningfully in the loop.