GOOGLE SLASHES AI ULTRA PRICE FROM $250 TO $100, FIRES OPENING SHOT IN THE AI SUBSCRIPTION PRICE WAR
Google came to its annual I/O developer conference this week with a message it has never had to send before: we are cheaper now. The company has cut its top-tier AI Ultra subscription from $250 per month down to $100, a 60 percent price reduction, while simultaneously introducing a new $200 mid-tier option. This is a direct attack on Anthropic, whose Claude Pro tops out at around $100 per month, and on OpenAI, where ChatGPT Pro sits at $200.
Google is backing the price cuts with new product launches. Gemini Spark is a new general-purpose AI agent in beta that can reason across connected apps and automate tasks. Gemini Omni handles video generation and editing. The core Google search box is being rebuilt around AI conversation, its biggest redesign in 25 years. The company claims enterprises can save over $1 billion in annual costs by moving 80 percent of their AI workloads to Gemini.
Gemini’s user base has more than doubled to roughly 900 million users over the past year, even as ChatGPT’s market share has declined. Google is now making a calculated bet that affordability and scale beat pure model capability. After years of playing catch-up on AI quality, Google is now trying to win on price.
Keywords: Google Gemini price cut, Google I/O 2026, Gemini AI Ultra, AI subscription pricing