Key Takeaways
- Oracle and Google have announced a strategic partnership, with Oracle set to offer Google's Gemini AI models through its cloud services and business applications, signaling a deepening collaboration in the competitive AI landscape.
- Cloud startup Vercel is reportedly receiving acquisition offers that value the company at a staggering $9 billion, highlighting continued robust investor interest in high-growth cloud platforms.
- New Zealand's manufacturing sector returned to expansion in July with its PMI climbing to 52.8, a significant rebound from the previous month's contraction.
- New Zealand's food price inflation eased in July, rising 0.7% month-over-month, down from 1.2% previously, while net migration continued to increase.
In a significant development for the technology sector, Oracle (ORCL) and Alphabet's Google (GOOGL, GOOG) have announced a new partnership where Oracle will integrate and sell Google's advanced Gemini artificial intelligence (AI) models through its cloud computing services and enterprise applications. This collaboration allows Oracle's diverse customer base to leverage Google's generative AI capabilities for tasks like text, video, image, and audio generation directly within Oracle's ecosystem, including its corporate finance, human resources, and supply chain planning applications. Customers will be able to pay for these Google AI technologies using their existing Oracle cloud credits, streamlining adoption. This move is seen as a strategic play for Oracle to broaden its AI offerings and for Google to expand the reach of its cloud services and attract more corporate clients.
Meanwhile, the cloud computing market continues to see impressive valuations, with cloud startup Vercel reportedly receiving offers valuing the company at $9 billion. This substantial valuation underscores the ongoing investor confidence and demand for innovative cloud platforms that streamline web development and deployment. Vercel, a leading frontend cloud platform, had a previous valuation of $3.25 billion in its Series E funding round.
Across the globe, New Zealand's economy presented a mixed but generally positive outlook with recent data releases. The BusinessNZ Manufacturing PMI for July surged to 52.8, a notable improvement from June's 48.8, indicating a return to expansion in the manufacturing sector after two months of contraction. A reading above 50 signifies expansion, suggesting renewed activity and confidence in the sector.
In terms of consumer prices, New Zealand's food prices increased by a more moderate 0.7% month-over-month in July, slowing from the 1.2% rise recorded in June. This deceleration in food inflation could offer some relief to households. Additionally, New Zealand's seasonally adjusted net migration continued its upward trend, reaching 1,670 in June, up from a revised 1,370 in the preceding month. This sustained influx of migrants could contribute to labor supply and economic activity.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.