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Sentiment towards ASX tech shares has improved in recent months and Google’s deal with one of our tech minnows could help further.
The Ai-Media Technologies Ltd (ASX: AIM) share price is currently up 15.71% at 40.5 cents. In contrast, the S&P/ASX Small Ordinaries Index (ASX: XSO) is 1.03% in the red.
Deal between Google and this small ASX tech share
The small-cap ASX tech share jumped after it said it would become Google’s lead global provider of premium live captioning and translation services for internal meetings and events.
The three-year agreement is valued at up to US$5 million. All Google employees will have access to Ai-Media’s services.
But the ASX company warned that there is no guarantee that the contract will generate the full value of the agreement.
Strategic importance
It was quick to play up the “strategic importance” of the agreement between the ASX tech minnow and the global giant though.
Ai-Media’s chief executive Tony Abrahams said:
We are incredibly excited to be partnering with Google, one of the world’s leading technology companies, to improve the interconnectivity of its employees through our product offerings.
This is an important agreement for Ai-Media as it highlights our position as a trusted market leader, and it validates our ability to deliver high-quality and secure captioning services to a variety of global customers across different industries. Ai-Media is capitalizing on the increasing demand for live captioning globally.
This agreement with Google demonstrates our product suite and technology is leading edge, and is expanding into more environments as video becomes a core communications tool for business.
ASX tech shares gaining traction
ASX tech shares have started to rebound following their brutal sell-off earlier this year. Deals like this show that there is value to be found as many of these shares are still nursing big losses.
In another boost to confidence, some ASX tech shares have started to attract takeover interest. These include the MOQ Ltd (ASX: MOQ) share price, and more recently, the Nearmap Ltd (ASX: NEA) share price.
Ai-Media share price snapshot
There seems like there may be a lot more room for the AI-Media share price to run. The shares have shed over 57% over the past year.
In contrast, the S&P/ASX All Technology Index (ASX: XTX) has fallen 27% over the same period.