Alphabet’s Google One subscription platform, which offers cloud storage and premium artificial intelligence tools, has now exceeded 150 million subscribers, according to a recent disclosure to Reuters. This milestone marks a rapid 50% growth since February 2024, when Google One first crossed the 100 million user threshold nearly six years after its initial launch.
The surge in subscribers appears closely linked to the rollout of a new $19.99 per month premium plan, introduced in February, which includes access to advanced AI features not available to free-tier users. While Google continues to offer lower-cost tiers focused solely on storage, these plans lack most of the AI-driven functionality integrated into the premium offering. Shimrit Ben-Yair, a vice president overseeing the subscription service at Google, noted that the new AI-centric tier has already attracted “millions” of paying users.
Alphabet shifts strategy amid AI disruption
This impressive growth in subscriptions reflects Alphabet’s broader strategy to reduce dependence on digital advertising, which still accounted for more than 75% of its $350 billion in revenue for 2024. With the rise of AI tools such as OpenAI’s ChatGPT and Google’s own Gemini platform threatening the dominance of traditional search engines, Alphabet appears to be actively diversifying its business model.
AI’s growing influence has already disrupted core components of Google’s empire. An Apple executive recently testified in court that, for the first time, Safari browser experienced a decline in Google searches—largely attributed to the increasing use of generative AI tools. The news sent shockwaves through the market, wiping out $150 billion in Alphabet’s market value in a single day. Apple is reportedly working on integrating its own AI-powered search options, signaling a potential erosion of Google’s long-held search monopoly.
Monetization of AI shifts from ads to subscriptions
Unlike traditional search engines that seamlessly integrate advertising, AI interfaces have not yet established an effective method for delivering paid promotions. As a result, tech firms have increasingly turned to monetizing AI via subscription plans or charging users based on tool usage. This shift in strategy mirrors the approach taken by other industry leaders and reflects the evolving economics of the digital age.
Facing mounting investor pressure to demonstrate how it plans to capitalize on its AI innovations, Google appears to be doubling down on its subscription ecosystem. During a February earnings call, Alphabet CEO Sundar Pichai emphasized this pivot when asked how the company intended to monetize Gemini. “Just like with YouTube, we’ll offer people different choices over time,” Pichai said. “For this year, we’re going to focus on building out the subscription path.”
Subscriptions could anchor future financial stability
Alphabet’s growing subscription revenue may become a critical element in the company’s long-term financial health. As consumer behavior shifts toward AI-powered tools and as advertising dynamics change, dependable recurring income through services like Google One can provide the stability investors seek.
Beyond AI features, Google One continues to offer traditional benefits such as expanded Google Drive storage and family sharing options, which remain attractive to millions of users worldwide. However, the spike in premium-tier signups underscores growing consumer interest in AI utilities like enhanced writing tools, image generation, and smart assistance, especially when integrated into the broader Google ecosystem.
If this momentum continues, Alphabet’s subscription-driven model may not only shield the company from search-related disruptions but also serve as a blueprint for how tech giants can monetize artificial intelligence in a post-advertising era.
