One minute until the official start. Both boats in close proximity.
Team NZ tuck just in front with 20 seconds to go.
Protest flag from Oracle.
But no penalty. And we're underway.
Team NZ slightly ahead and the boats up the speed immediately.
Another great start from Dean Barker as Team NZ round mark one in front.
The boats are travelling at 37 knots as Team NZ open a slight lead.
Oracle gybe first, off to the left.
Replays showing the boats barely touched just before the start - hence the protest flag from Oracle.
But with no penalty Team NZ were free to open up another advantage.
The boats at the very left of the course, Oracle tack back to the right but they haven't made up the deficit.
Team NZ clear ahead as we head towards the second mark.
The boats are rather even in speed down-wind, but Team NZ showed their edge up-wind in race one.
The boats approaching gate two now, and around they go with Team NZ slightly in front.
Oracle with a huge nose-dive!
Not quite as dramatic as Team NZ's in the Louis Vuitton Cup, but it will slow them up.
They really dived in as they rounded mark two.
Now on the up-wind leg and Team NZ have a decent lead.
Team NZ travelling a couple of knots faster up-wind.
Oracle staying in touch but Team NZ still hold the edge.
Jimmy Spithill: 'Obviously not the result we wanted.'
'We thought they were going to get a penalty on the start there, but it didn't happen.'
'The boats are very close and tomorrow's another day.'
Thanks for joining us on a great day for Team New Zealand. Check nzherald.co.nz as the day unfolds for full analysis from Dana Johannsen and Paul Lewis in San Francisco.
And be sure to tune in tomorrow morning for the second day of racing. Race at 8.10am NZT.