SAN FRANCISCO, California: Google One, Alphabet's subscription service that offers cloud storage and AI-powered features, has surpassed 150 million users, marking a 50 percent increase since February 2024, the company said.

The surge follows the introduction of a US$19.99 per month plan that grants access to AI capabilities unavailable to free users, a move that has driven "millions" of new subscriptions, according to Shimrit Ben-Yair, vice president of the service.

The AI-focused tier is part of Google's broader strategy to reduce its reliance on advertising, which accounted for more than three-quarters of its $350 billion in revenue in 2024. As AI tools like OpenAI's ChatGPT and Google's own Gemini begin to draw users away from traditional search engines, the tech giant is leaning into subscriptions as a critical revenue stream.

Apple's move to explore AI-powered search options, as revealed in court testimony last week, contributed to a $150 billion loss in Alphabet's market value, underscoring the urgency for the company to adapt. The rise of AI has disrupted search engine usage, with searches on Apple's Safari browser declining for the first time ever.

CEO Sundar Pichai has indicated that Google will likely expand its monetization strategy for AI through subscriptions, similar to its approach with YouTube. "For this year, I think you'll see us be focused on the subscription direction," Pichai said during an earnings call in February.

The rapid adoption of the new AI subscription tier underscores the increasing consumer demand for advanced AI tools, positioning Google One as a key player in Alphabet's shift toward a more diversified revenue model.