Google’s bet on AI subscriptions appears to be working

Google One, the company’s umbrella subscription for cloud storage and, more recently, advanced AI features, has just hit another impressive milestone. According to a Reuters report, Google One recently crossed the 150 million subscriber mark. That’s a substantial 50% surge from the 100 million subscribers they announced back in February 2024!

A significant catalyst for this recent growth almost certainly has to be Google’s AI Premium tier, which was introduced in February 2024. For $19.99 a month in the US, this plan bundles the standard 2TB of storage and other Premium perks (like 10% Google Store credit and unlimited Magic Editor saves) along with access to Google’s most powerful AI offerings. These AI features include Gemini Advanced, Gemini integration within Workspace apps (Gmail, Docs, etc.), NotebookLM Plus, and early access to experimental AI features like those in Search Labs. Google indicated that this AI-focused tier already accounts for “millions” of its subscribers, and it’s clear this is a major area of focus.

A nice bonus for Chromebook users

And if you’re a Chromebook user, you may be one of the millions of Google One users. You might remember that at the Chromebook Showcase about this time last year, Google announced that all Chromebooks now come with a 12-month free trial of the Google One AI Premium plan. While this is a fantastic way for new Chromebook owners to experience the power of Gemini Advanced and its Workspace integrations, and it certainly contributes to getting more people to try AI Premium, it’s likely more of a value-added benefit for Chromebook users and a good introductory funnel rather than the sole driver of that massive 50 million overall subscriber jump. Still, it’s a great opportunity for Chromebook users to explore these tools.

And if you do happen to get access to AI Premium, whether through a trial or a direct subscription, I highly recommend diving in and seeing what Gemini can do. I’m constantly finding new ways to use it. Just the other day, I was faced with comparing two rather dense business insurance policy quotes. I uploaded both documents to Gemini and was able to ask specific questions, having it highlight the key differences in coverage and break down the jargon. It genuinely helped streamline a complex decision – pretty incredible stuff.

Google’s broader subscription strategy

This impressive growth for Google One fits squarely into Alphabet’s larger financial strategy. With AI chatbots (including Google’s own Gemini and competitors like ChatGPT) potentially shifting the landscape of search and advertising, building a robust subscription revenue stream is key. As AI interfaces haven’t yet found a seamless way to integrate ads, subscriptions are the current focus for monetization. CEO Sundar Pichai noted in February during an earnings call that Google would be “focused on the subscription direction” for Gemini this year.

While Google One continues to offer its more affordable Basic ($1.99/mo for 100GB) and Standard ($2.99/mo for 200GB) storage plans, the rapid subscriber increase following the launch of the AI Premium tier indicates a strong public appetite for these advanced AI capabilities. But what about you: are you an AI Premium subscriber? If so, do you think it’s worth $19.99 a month, and what sort of tasks are you using it for? Let me know in the comments!