Alphabet's Google One hits 150 million subscriptions amid shift to AI-powered services
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Alphabet's Google One service has surpassed 150 million subscribers, the company told to the media, marking a major leap in its shift toward subscription revenue as it faces rising pressure from AI competitors.
The milestone reflects a 50% jump in subscribers since February 2024, when Google One reached 100 million users.
That same month, Google launched a $19.99-a-month premium tier offering exclusive artificial intelligence features.
The AI-powered plan has already attracted "millions" of users, said Shimrit Ben-Yair, a Google vice president overseeing the service.
Google One continues to offer cheaper storage-only plans, but the AI tier marks Alphabet's clearest effort yet to monetise its artificial intelligence tools directly.
Subscriptions are playing a growing role in Alphabet's strategy to reduce reliance on advertising, which generated over 75% of its $350 billion revenue in 2024.
The success of Google One comes as Alphabet confronts a shift in consumer behaviour.
AI chatbots like OpenAI's ChatGPT and Google's own Gemini are beginning to alter how users search for information—threatening Google's dominance in online search.
In a recent court testimony, an Apple executive confirmed that searches on Safari declined for the first time, partly due to AI tools.
Apple is developing its own AI search options, intensifying the competitive threat to Alphabet.
Alphabet lost $150 billion in market value after the testimony.
Unlike traditional search, AI platforms currently lack a clear model for advertising. Many tech companies, including Alphabet, are now leaning into subscription or usage-based pricing models.
CEO Sundar Pichai addressed monetisation during a February earnings call. 'Just like you've seen with YouTube, we'll give people options over time,' he said. 'For this year, I think you'll see us be focused on the subscription direction.'
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