Key Points:
- Google launched a $249.99/month AI Ultra Plan with high-end features and tools.
- Project Mariner and Deep Think aim to enhance productivity and AI reasoning capabilities.
- New smart glasses and XR collaborations highlight Google’s push for wearable tech.
- Google’s search market share is under pressure from AI alternatives like ChatGPT. In 2025, Alphabet will spend $75 billion on AI infrastructure and development.
Alphabet’s Google announced a sweeping expansion of its AI offerings during the annual I/O conference in Mountain View, California. These included a new $249.99/month AI Ultra Plan, fresh AI search capabilities, and updated smart glasses.
The company emphasized that AI will be central to Google’s future as it looks to counter rising competition from OpenAI, Anthropic, and others. CEO Sundar Pichai stressed affordability, noting Google’s commitment to offering advanced models at competitive prices.
The AI Ultra Plan provides access to high-capacity AI tools like Deep Think, improved reasoning capabilities, 30TB of cloud storage, and an ad-free YouTube subscription. It also includes Project Mariner, a tool that automates internet navigation. The pricing aligns with rival premium services from OpenAI and Anthropic, reflecting the high cost of AI development.
Google’s Gemini AI assistant now boasts over 400 million monthly users. One major reveal was the nationwide launch of “AI Mode” in Google Search, transforming it from a traditional keyword-based tool to a dynamic, answer-driven interface. This move signals a shift toward AI-centric search experiences.
Demonstrations also highlighted Google’s progress in smart wearables. A revamped version of its smart glasses, now using Android XR, was showcased with real-time translations and environmental recognition powered by Gemini AI. Google is also collaborating with Samsung on an XR headset and partnering with eyewear brands Warby Parker and Gentle Monster.
Google remains optimistic despite recent stock setbacks, like a $150 billion drop following concerns over AI’s impact on traditional search. Analysts warn Google’s search market share could drop below 50% by 2030 due to the rise of AI chatbots. Yet, executives believe AI will expand ad opportunities rather than reduce them.
Tuesday’s event also featured Project Astra demos, including AI scheduling through a camera and the launch of Veo 3, a model for realistic video and audio generation. Alphabet is projected to spend $75 billion on AI-related capital investments in 2025, underscoring its commitment to leading in AI.
