Google Slashes AI Subscription Prices

Google announced a price cut for AI Plus subscribers, in a move that could mark the start of a broader price war in the artificial intelligence tools market. According to the notice sent to users, including in Israel, the monthly subscription price fell from 30 shekels to 19 shekels. The annual price dropped from 300 shekels to 190 shekels. At the same time, the storage included in the subscription will double from 200 GB to 400 GB.

Alongside the discount, Google is also changing how usage quotas for Gemini are calculated. Instead of a monthly allocation of 200 AI credits, the company will move to a new model that calculates usage based on the complexity of prompts, the features used and the length of conversations. The quota will reset every five hours, up to the weekly cap.

Google says AI Plus subscribers will continue to enjoy a usage quota twice as large as that of non-subscribers, and that the new model is intended to preserve the existing user experience. The company plans to extend the new quota system to additional products as well, including Flow and Antigravity.

The AI Plus subscription was launched as a relatively low-cost AI plan, aimed mainly at private users and students. It includes access to tools such as video creation, Google Flow and the NotebookLM research assistant, along with cloud storage services. The move comes against the backdrop of growing competition among AI companies, after OpenAI launched ChatGPT Go at a discounted price in certain markets. According to estimates, price cuts could turn AI tools from a premium product into a basic consumer product and intensify competition for users.