Google hits 150M Subscribers, Thanks to AI

SAN FRANCISCO, May 15 (Reuters) – Alphabet’s Google One subscription service, which offers paid cloud storage and AI tools, has recently surpassed 150 million subscribers, the company told Reuters.

This marks a 50% growth since February 2024, when Google One reached 100 million subscribers, nearly six years after its launch.

Google Launches $19.99/Month Plan with Exclusive AI Features

That same month, Google launched a $19.99-per-month plan that includes exclusive AI features not available to free users. Lower-priced Google One plans focused on file storage remain available but include limited AI functionality.

According to Shimrit Ben-Yair, a vice president at Google overseeing the subscription service, the new AI tier has attracted “millions” of subscribers.

Google One is part of Alphabet’s strategy to expand its revenue sources beyond advertising, which made up over 75% of its $350 billion total revenue in 2024.

Alphabet’s Subscription Strategy Key to Long-Term Financial Success Amid AI Chatbot Competition

Alphabet’s success with subscriptions may be crucial to its long-term financial prospects as it faces the challenge posed by AI chatbots, such as OpenAI’s ChatGPT and its own Gemini, to its dominance in the search engine market.

An Apple executive testified last week that AI offerings led to a decline in searches on Apple’s Safari browser for the first time ever. The iPhone maker is planning to roll out AI-powered search options, which poses a setback for Alphabet, as it lost $150 billion in market value on that day.

Unlike search engines, AI interfaces have not yet figured out an efficient method to integrate ads. As a result, many companies are opting to charge users through subscriptions or usage-based fees. This has raised concerns among investors about how Google will adjust.

“Similar to what we’ve done with YouTube, we’ll offer people more options over time,” CEO Sundar Pichai said in February when asked about monetizing Gemini during an earnings call. “This year, our focus will be on the subscription model.“

Read the original article on: Reuters

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