Google One hits 150 million subs as AI features expand, traditional search contracts

Google’s subscription service is experiencing unprecedented growth by adding AI features to its cloud storage plans. This strategic pivot comes at a critical time as the company seeks to diversify revenue streams beyond advertising, especially as generative AI threatens to disrupt traditional search and advertising models that have long been Alphabet‘s primary business drivers.

The big picture: Google One has reached 150 million subscribers, marking a 50% increase since February 2024, as the company aggressively expands into AI-powered subscription services.

• The milestone comes shortly after Google introduced a premium AI plan priced at $19.99 monthly that offers advanced artificial intelligence features not available to free users.
• “Millions” have already subscribed to the new AI-focused tier, according to Shimrit Ben-Yair, Vice President overseeing the service.

Behind the numbers: While Google One launched nearly six years ago as primarily a cloud storage service, the recent addition of AI capabilities has significantly accelerated its growth trajectory.

• Lower-tier plans remain available for users seeking storage without AI features, providing multiple entry points for different customer needs.
• The expansion represents a crucial shift as Google works to reduce its dependence on advertising, which still accounted for over 75% of Alphabet’s $350 billion revenue in 2024.

Why this matters: Alphabet faces existential pressure as AI assistants begin eroding its core search business, forcing the company to develop new revenue streams.

• An Apple executive recently testified that search volumes on Safari declined for the first time due to increasing use of AI assistants, news that caused Alphabet to lose $150 billion in market value in a single day.
• Unlike search engines, AI interfaces haven’t yet developed effective advertising models, pushing companies toward subscription-based monetization strategies.

What they’re saying: “Just like you’ve seen with YouTube, we’ll give people options over time. For this year, I think you’ll see us be focused on the subscription direction,” CEO Sundar Pichai stated in February.