Alphabet’s cloud-based subscription service, Google One, has passed 150 million users, a 50% increase in just three months.
Driven largely by the new $19.99/month plan that gives paying users exclusive access to advanced tools, including some of Google’s top AI capabilities, more people are moving away from traditional free models and are willing to pay for premium experiences, especially if they believe it gives them an edge.
Shimrit Ben-Yair, vice president at Google, confirmed that the higher-tier AI plan alone has drawn in “millions” of subscribers since its launch in February.
This isn’t just about cloud storage anymore. Alphabet is moving away from its dependency on ad revenue, which made up over 75% of its $350 billion haul in 2024. The pressure to diversify is real and urgent.
Why? The ground is shaking beneath Google’s core product: search. Apple recently revealed, during court testimony, that search activity on its Safari browser declined for the first time ever. It’s a first blow, and likely not the last, as users are turning to AI assistants rather than traditional search engines.
The timing couldn’t be worse for Alphabet. That single disclosure from Apple triggered a reaction on Wall Street, wiping $150 billion off Alphabet’s market value in one day.
Investors want answers. Can Google adapt to a future where ads don’t dominate? Can it make people pay for what they used to get for free?
Sundar Pichai said. “Just like you’ve seen with YouTube, we’ll give people options over time,” he said in February. “For this year, I think you’ll see us be focused on the subscription direction.”
That direction might be the company’s only lifeline. Unlike with search engines, where ads are woven into the user experience, AI tools aren’t built for advertising, at least not yet. The current playbook? Charge people directly through subscriptions or usage-based pricing.
Google One may be the clearest sign yet of Alphabet’s attempt to future-proof itself. But it also tells us that if users see value, they’ll pay and if Google wants to keep its lead, it can’t afford to be free anymore.
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