Alphabet's Google One subscription service has surpassed 150 million subscribers, marking a 50% increase since February 2024, when it had reached 100 million subscribers after nearly six years since its launch. The service charges consumers for cloud storage and artificial intelligence features. In February 2024, Google introduced a $19.99 per month plan that offers access to AI capabilities not available to free users. The company also offers lower-priced Google One subscription tiers for file storage, which lack most AI features.

According to Shimrit Ben-Yair, a Google vice president in charge of the subscription service, the new AI tier accounts for "millions" of subscriptions. Google One is part of Alphabet's strategy to diversify its revenue streams beyond advertising, which constituted over three-quarters of its $350 billion in overall revenue in 2024. Alphabet's success with subscriptions may be crucial for its long-term financial outlook as it confronts the threat posed by AI chatbots like OpenAI's ChatGPT and Google's own Gemini to its search engine dominance.

The rise of AI offerings has led to a decline in searches on Apple's Safari browser for the first time, as revealed by an Apple executive during recent court testimony. Apple is planning to introduce AI-powered search options, which presents a challenge for Alphabet, which experienced a $150 billion drop in market value following the announcement. Unlike search engines, AI interfaces have not yet found an effective way to integrate ads, leading many companies to charge users through subscriptions or based on product usage.

Investors have raised concerns about how Google will adapt to this changing landscape. CEO Sundar Pichai stated in February during an earnings call that Google will provide people with options over time, similar to what they have done with YouTube. He added that the focus for the year would be on the subscription direction as they monetize Gemini.