Google (NASDAQ: GOOGL) is cutting the monthly price of its AI Plus subscription from $7.99 to $4.99, while simultaneously doubling the cloud storage included with the plan.
The updated AI Plus tier now provides subscribers with 400GB of cloud storage, a significant increase from the 200GB that had been offered since the plan launched in January 2026.
The price reduction takes effect on the next billing cycle rather than immediately, with the expanded storage set to roll out to users over the following few days.
Vikas Kansal, Product Lead for Gemini AI subscriptions, announced the pricing change through his account on X, confirming the new rate of $4.99 per month.
Kansal also confirmed the reduction would apply in other regions, with local currency equivalents including CAD 7, GBP 4.50, EUR 5, and INR 400.
The AI Plus plan first became available in January 2026 as a lower-cost entry point to access Google’s Gemini 3 Pro model, Nano Banana Pro, and Deep Research features.
Subscribers receive double the usage limits found in the free Gemini app tier, a 128,000-token context window, and access to features including Daily Brief, Omni Flash video generation, and scheduled interactions.
The 400GB of storage is shared across Gmail, Drive, and Google Photos, and the plan supports family sharing for up to six people.
Google is also formally rebranding its existing $9.99 per month 2TB storage tier as Google AI Plus, bringing it under the same product umbrella as the updated entry-level subscription.
The company has been aggressively restructuring its AI subscription lineup, having upgraded AI Pro with 5TB storage at no extra cost in April, while AI Ultra received a new $100 per month entry point with its top tier dropping from $250 to $200 per month.
At $4.99, Google’s plan now undercuts OpenAI’s ad-supported ChatGPT Go plan, which is priced at $8 per month, positioning AI Plus as the lowest-priced major AI subscription among top-tier providers.
The pricing move reflects a broader industry challenge where many users find free AI models sufficient for their needs, creating financial pressure on companies heavily invested in AI infrastructure and server costs.
