Google has announced that its Google One subscription service has surpassed 150 million subscribers, marking a major milestone in the company’s efforts to diversify revenue streams beyond digital advertising. This surge comes after the introduction of premium AI-powered features that helped drive millions of new signups.
According to Shimrit Ben-Yair, VP at Google, this growth represents a 50% increase since February 2024, when Google One reached 100 million subscribers. The jump was significantly fuelled by a new $19.99/month tier offering exclusive artificial intelligence capabilities not available to free users.
AI-Powered Subscriptions Drive Growth for Google One
Launched nearly six years ago, Google One was originally positioned as a cloud storage solution. In 2024, it expanded to include generative AI tools, which now serve as a major selling point for its premium plans.
“Millions of users have signed up for the AI tier,” said Ben-Yair, emphasising consumer demand for advanced AI tools integrated directly into Google’s ecosystem.
While lower-priced Google One plans still offer cloud storage, the higher-tier subscription includes tools powered by Gemini AI, Google’s answer to platforms like ChatGPT.
Alphabet’s Strategy to Reduce Dependence on Ad Revenue
This move is part of Alphabet’s broader strategy to reduce reliance on advertising, which contributed over 75% of its $350 billion revenue in 2024. The subscription boom positions Google One as a key player in the company’s long-term monetisation road map, especially as the digital landscape shifts toward AI-powered services.
Alphabet CEO Sundar Pichai has pointed to subscriptions as a critical path forward:
“Just like with YouTube, we’ll give people options over time. For this year, I think you’ll see us focused on the subscription direction,” Pichai noted during a February earnings call.
AI Threatens Google’s Search Dominance
The success of AI tools has begun to disrupt Google’s core business. For the first time, search traffic declined on Apple’s Safari browser, reportedly due to increased use of AI chatbots. Apple is also exploring AI-powered search, posing a competitive threat to Google’s dominance in the space.
Additionally, AI interfaces like ChatGPT and Gemini are not yet optimised for ad integration, making subscription-based models more viable for monetisation.
AI and Subscription Synergy Powers Google’s Future
With over 150 million Google One subscribers, Alphabet is proving that AI-driven subscription models can effectively support its long-term financial outlook. As more users seek cloud storage with embedded AI tools, Google’s shift away from an ad-dependent model could redefine its role in the rapidly evolving tech ecosystem.
