Google hits 150 million users for subscription service with help of AI

By Kenrick Cai

SAN FRANCISCO (Reuters) -Alphabet's Google One subscription service, which charges consumers for unreality retention and artificial quality features, precocious crossed 150 cardinal subscribers, the institution told Reuters.

That represents a 50% summation since February 2024, erstwhile Google One crossed 100 cardinal subscriptions astir six years aft the work launched.

The aforesaid month, Google introduced a $19.99 a period program with entree to AI capabilities unavailable for escaped users. The institution continues to connection Google One subscription tiers for record storage, but without astir AI features, astatine little prices.

The caller AI tier accounted for "millions" of subscriptions, according to Shimrit Ben-Yair, a vice president astatine Google successful complaint of the subscription service.

Google One is portion of Alphabet's effort to diversify beyond advertising, which accounted for much than three-quarters of its $350 cardinal successful wide 2024 revenue.

Alphabet's occurrence with subscriptions could play a cardinal relation successful its semipermanent fiscal outlook arsenic it grapples with the menace of AI chatbots, similar OpenAI's ChatGPT oregon Google's ain Gemini, to its hunt motor stronghold.

AI offerings caused a diminution successful searches connected Apple's Safari browser for the archetypal clip ever, an Apple enforcement said during tribunal grounds past week. The iPhone shaper is looking to present AI-powered hunt options, a stroke for Alphabet, which mislaid $150 cardinal successful marketplace worth that day.

Unlike with hunt engines, AI interfaces person yet to find a seamless mode to incorporated ads. Many companies are alternatively charging users done subscriptions oregon based connected merchandise usage.

Investors person questioned however Google volition adapt.

"Just similar you’ve seen with YouTube, we’ll springiness radical options implicit time," CEO Sundar Pichai said successful February erstwhile asked efforts to monetize Gemini during an net call. "For this year, I deliberation you’ll spot america beryllium focused connected the subscription direction."

(Reporting by Kenrick Cai successful San Francisco; Editing by Stephen Coates)