In a potential industry shake-up, Google explores subscription models for AI search features to offset soaring computational expenses
In a move signaling a seismic shift in its revenue strategy, Google is reportedly contemplating the introduction of charges for its AI-enhanced search capabilities. This decision underscores the burgeoning costs associated with delivering cutting-edge artificial intelligence services, prompting a broader industry trend towards subscription-based models.
According to details revealed by the Financial Times, Google is considering limiting its novel search functionality to subscribers of its premium services, a strategy already in place for AI assistants integrated into Gmail and its suite of office applications.
This AI-powered search method, currently under beta testing for select users, aims to furnish direct, conversational responses akin to those provided by ChatGPT and similar platforms.
The impetus behind this proposed change lies in the heightened computational demands of AI-driven search processes compared to traditional search methods. “AI search entails significantly higher computing costs. By charging for this service, Google aims to recover these expenditures,” explained Heather Dawe, Chief Data Scientist at UST, a digital transformation consultancy.
The AI sector has been grappling with the steep costs of training sophisticated generative models. A notable instance is Amazon’s $65 million training run, with projections suggesting a leap to $1 billion expenditures in the foreseeable future. OpenAI and Microsoft’s recent announcement of a $100 billion AI datacenter initiative further underscores the financial commitments being made towards AI development.
However, as Brent Thill, an analyst at Jefferies, points out, the bulk of AI’s compute spending is allocated not to model training but to their operation — a segment that has seen rapid growth as more AI tools enter production. “The challenge lies in managing the ongoing costs of running AI models, with strategies varying from monthly charges aimed at covering usage expenses to per-use pricing models designed to mitigate cost risks,” Thill remarked.
Competitive AI search services are adopting similar subscription frameworks. For example, Perplexity, an AI search engine, offers a monthly “pro” tier at $20, enabling access to superior AI models and unrestricted usage. Conversely, some providers, like Microsoft with its AI-enhanced Bing search, continue to offer services at no cost, albeit with usage tied to specific platforms such as the Edge browser.
As Google and other industry players navigate the evolving landscape of AI search, the push towards subscription models reflects a strategic effort to sustain innovation while managing the fiscal realities of AI technology deployment.
